Key ups ante on trade deal with Korea

Time is running out for New Zealand to secure a quality free trade agreement with South Korea, Prime Minister John Key has admitted.

Mr Key has used his visit to Seoul for the Nuclear Security Summit to up the ante on sluggish progress on the deal.

After a meeting with President Lee Myung-bak on Sunday, Mr Key used a breakfast speech to petition Korean importers and exporters.

Looming national elections next month and the expiration of President Lee’s term in December means there is only a small chance to get the deal over the line.

‘‘There is a window of opportunity after the national elections and before the president leaves office, where in theory it would be technically possible to complete an FTA,’’ Mr Key said.

Because the two nations are currently celebrating five decades of diplomatic ties, called the 50th Year of Friendship, ‘‘there is some great symbolism about it’’, he said. However, he added, ‘‘One shouldn’t underestimate the challenges.’’

With that in mind, Mr Key last night also met ruling party Saenuri leader Park Geun-hye, who is widely expected to succeed Mr Lee. She has visited New Zealand and Mr Key wants to determine if she is in favour of a trade deal.

Two-way trade is worth up to $3 billion a year, but crippling tariffs could see New Zealand firms withdraw. Mr Key said Fonterra and Zespri were ‘‘clinging on’’ in the hope of an agreement.