James Parsons, chief executive of B+LNZ, said the deal would help keep both farmers and exporters competitive in this key market for them.
Korea is NZ’s fourth-largest beef market by volume. However, volumes have dropped in recent years, in part due to competitors such as the USA and, more recently, Australia and Canada, having a tariff advantage through their FTAs with Korea.
Close to 90% of NZ sheep and beef was exported in 2013, resulting in NZ$318m worth of tariffs being paid, around NZ$52m of which was paid in Korea where tariffs on its beef exports are 40%.
Bill Falconer, chairman of the Meat Industry Association, added: “These negotiations were tough, and credit must go to our government negotiators and to Trade Minister Groser for the excellent job they did in getting this deal done.”