Korea and New Zealand started negotiations to conclude a free trade agreement in 2009. But there has been little progress due to differences over certain issues, including Korean farmers’ concern about increased competition.

Nevertheless, the head of New Zealand’s trade office in Korea expressed eagerness for a high level free trade agreement with Korea at an early date.

“An FTA with Korea will increase trade in both directions. A free trade agreement between New Zealand and Korea is of major importance, and it is important that we continue our momentum,” said Ryan Freer, commissioner of the New Zealand Trade & Enterprise in Korea.

South Korea is currently New Zealand’s fifth-largest trading partner and export destination. The two export-intensive countries celebrated the 50th anniversary of diplomatic relations last year.

Speaking in an interview with The Korea Herald last week, Freer said “not in the too distant future” the two nations will be able to conclude “the high quality FTA that both countries want.

“Negotiation started a number of years ago as a matter of fact, but in my position as New Zealand’s trade commissioner in Korea, I would like to see the momentum continue.”

Many New Zealand companies are losing market share in Korea because of the price competitiveness of their rivals from the U.S., Chile and the EU, where preferential free trade agreements with Korea are in place.

Trade observers said New Zealand’s exports of wine and food to Korea have declined significantly due to these FTAs.

The commissioner first came to Korea in 2001 to teach English and earned his degree at Seoul National University. The 2002 World Cup was simply fascinating, he recalled.

“I always seem to find my way back to Korea,” he said.

Having studied and worked in the country, he concluded that Koreans perceive New Zealand as a high quality producer of safe, premium foods and think of New Zealand as a pure and natural paradise.

Despite the global economic slowdown, the recent rise of the middle class ― both globally and regionally ― is also promising for New Zealand’s premium food and beverages, he said.

He added that, in 2013, New Zealand expects to further develop its relationship with Korean food suppliers following the increase in consumer demand. He evaluated that the synergy effect will greatly benefit both sides, since most of New Zealand’s food products are complementary in season and subsector to Korean-grown produce.

He estimated that New Zealand exports to Korea were worth about $1.3 billion in 2012, among which food and beverages accounted for about 44 percent. Wood, aluminum, beef, seafood and dairy are also key exports to Korea.

South Korea is the second largest export market for New Zealand deer velvet and Greenshell mussels. Korea is also the third largest importer of dairy products from New Zealand, the world’s No. 1 dairy exporter.

New Zealand meat accounts for about 20 percent of total food and beverage exports to Korea, while cheese takes up about 19 percent and fresh fruit about 11 percent. In particular, cheese and vegetables are strong growth areas, recording 14 percent and 12 percent growth, respectively, in the last calendar year.

New Zealand’s internationally regarded wine and beers are also popular in Korea. Over 50 New Zealand wine companies are now represented in the country.

“If we look at beverages by quantity year-on-year, they have doubled,” he said.

From May 14 through May 17, New Zealand companies showcased premium quality local food and beverages by participating in the New Zealand pavilion at the Seoul Food Expo at KINTEX in Ilsan. The companies exhibited products such as infant formula, honey, pies, beef, fruit-based beverage syrups, beef jerky, beer and seafood.

By Chung Joo-won (joowonc@heraldcorp.com)