FTA, economy top S. Korea-New Zealand summit

(ATTN: RECASTS headline, lead paras; UPDATES with remarks from a spokesman for the
South Korean presidential office)
By Byun Duk-kun
AUCKLAND, New Zealand, March 3 (Yonhap) -- South Korea and New Zealand will soon
hold the first round of negotiations on concluding a free trade agreement,
possibly before the end of the year, following a declaration by their two leaders
Tuesday to start the official talks.
The declaration came at a summit between visiting South Korean President Lee
Myung-bak and New Zealand Prime Minister John Key, where the leaders also called
for greater cooperation between the countries on other bilateral and regional
issues, including the North Korean nuclear threat.
The FTA talks could start as early as June, an official from the South Korean
presidential office said, asking not to be identified.
"The two leaders declared the start of negotiations for an FTA, which will shape
the future economic relationship of the two countries, and expressed hope the
Korea-New Zealand FTA will be signed at an early date," a joint statement
released at the end of the summit said.
Also high on the summit agenda was agriculture reform, which along with market
liberalization and free trade deals, prompts the most heated reactions from South
Korean farmers.
The issue, according to a spokesman for the South Korean presidential office
Cheong Wa Dae, was added at the last minute to the list of topics for the summit
as Lee stressed the need to raise the competitiveness of South Korean farmers on
his way here.
At the summit, Lee noted that New Zealand was one of the most successful
countries in the world in reforming their agricultural sector, while the New
Zealand premier said his country would be glad to share its experience with
Seoul, the spokesman, Lee Dong-kwan, told reporters.
"There will not be an announcement of measures to reform the agricultural sector
immediately following the president's return to South Korea, but there are
various measures now being discussed," a Cheong Wa Dae official said.
The official said the measures will not lead to any immediate cuts on government
subsidies for farmers, but noted South Korean farmers, accounting for 6 percent
of the population, produce only about 3 percent of gross domestic product (GDP),
while their New Zealand counterparts, accounting for only 2.5 percent of the
population, take up 18 percent of the GDP.
This, the official said, demonstrates a serious lag in the competitiveness of
South Korean farmers despite the large difference in GDP between New Zealand and
South Korea, the world's 13th largest economy.
In a joint press conference that followed the summit, the leaders said the
meeting was useful and that they also dealt with ways to overcome the global
economic crisis.
"We agreed that protectionism may help a country for a while but that it will
slow down the recovery of the global economy and will continue to prevent
economic recovery," the South Korean president said.
Key, calling the meeting "very constructive," noted they also discussed joint
efforts to counter climate change and increase cooperation in developing
low-carbon, renewable energy sources.
The prime minister said he has also asked Seoul to take part in joint research
between his country and Australia to develop new carbon capture and storage
technology.
Lee, currently on a three-nation trip, arrived here earlier in the day for a
two-day visit, and has also met with Anand Satyanand, Governor General of New
Zealand. This week's trip will also take him to Australia and Indonesia.
The FTA, if signed, is expected to help significantly expand bilateral trade
between the two countries, which is already on a steady rise since it topped
nearly US$1.9 billion in 2007, according to South Korean officials here.
The leaders also agreed to step up their cooperation in various international
forums, such as the Asia-Pacific Economic Cooperation summit and the ASEAN
Regional Forum, to realize their "mutual goals," officials said.
On the North Korean issue, the two reaffirmed six-way talks between the two
Koreas, the United States, Japan, China and Russia, were the best way to
denuclearize the communist nation.
bdk@yna.co.kr
(END)