The New Zealand-Korea Free Trade Agreement has come into force today.
The ministry said the FTA will contribute to boosting trade and investment cooperation between the two countries. Visas will also be relaxed for Chinese visitors. “The previous tariff on cherry exports was 24 per cent”.
According to the Korea-Vietnam FTA, the 12 percent tariff on Korean fabrics and textiles is to be eliminated within three years, and the 7 to 25 percent tariff on auto parts is to be removed in five to 15 years, which means Korea’s intermediate goods exports to Vietnam can increase with time.
In 2014, the RoK is the third largest trade partner of Vietnam, after China and the United States, while Vietnam is the RoK’s sixth largest export market.
If the liberalized trade reaches its goal 20 years later, South Korean companies are expected to reduce tariff costs by up to $5.44 billion annually, much higher than tariff savings of $930 million from the South Korea-US FTA and $1.38 billion from the South Korea-EU FTA.
Lin said the South Korea and Australia FTAs have advanced articles on service trade. Korean firms’ penetration into China’s service market is expected to accelerate. Australian experts have said the deal may enable Australian producers, of for example, beef, to raise export prices, which they previously had to cut to compete with exports from countries such as New Zealand, which already had free trade deals with China. The number of applicants for working holiday to New Zealand will rise to 3,000 next year from current 1,800 this year.
As of October 20, South Korea had surpassed Japan to become Vietnam’s largest foreign investor, with total foreign direct investment (FDI) of $43.6 billion in 4,777 projects, according to the Vietnamese Ministry of Planning and Investment.
“These two FTAs will help speed up negotiations on other FTAs and the Regional Comprehensive Economic Partnership”, said Shen Danyang, spokesman for China’s Ministry of Commerce.