South Korea seeks trade concessions from N.Z.

Press, 2 November 1981, Page 22

South Korea seeks trade concessions from N.Z.

By

BRUCE ROSCOE

in Tokyo

South Korean business leaders view their country’s SUS 36 million trade deficit with New Zealand as a good reason to push for improved access to the New Zealand market and are making trade arguments New Zealand is more accustomed to offering its trading partners than it is to receiving. This was made clear in the Korean papers presented to the third Korean-New Zealand Business Council's meetings in the South Korean capital of Seoul in October.

South Korea, following the Japanese pattern of industrialisation, has, like Japan, quickly become an important business partner for New Zealand. Although the two-way trade at $92 million is not large, the rise in New Zealand’s exports from just $l5 million in 1973 to $64 million in 1980 points to a growing market for needed commodities.

New Zealand is also finding in the Korean connection a safety-valve market for raw material exports. Japan is a larger customer for coal, iron sands and timber but New Zealand export negotiators, when prices are down in Tokyo, often make the twohour trip to Seoul to see if they can do better there, which also lets Japanese buyers at least know New Zealand has an

easily accessible alternative market.

To rectify the trade imbalance, South Korea is seeking to have the recently announced quota pf 309 Pony cars increased and wants them accorded preferential tariff treatment South Korean cars are discriminated against, the businessmen claim, in that they face a 55 per cent import duty in New Zealand, while the duty New Zealand levies against British and Australian cars is 20 per cent. In addition, a concession is sought with regard to the export of technicians. The Korean businessmen believe New Zealand’s large-scale energy projects will require about 7500 workers and see no reason why skilled Korean technicians cannot be sent for some of the work.

Claiming that, “there remain several factors to be settled promptly in connection with South Korea's fishing operations in New Zealand’s zone, such as a readjustment of fishing, zones and quotas,” the South Korean fishing industry has, year after year, watched its boats’ catches decrease and fishing quotas cut back. Ahead of the Japanese, at least publicly, the Korean fishing industry is admitting that the only answer to its complaints is to enter into joint

venture arrangements with New Zealand firms, which it thinks would also circumvent New Zealand restrictions on on-the-spot sales of fish caught by foreign vessels in New Zealand waters. Korean fishing companies say they have incurred heavy losses in opting to transport their catches back to South Korea for processing and sale.

Against these demands. NewZealand. too, is indicating areas of concern in the trade. As well as facing restrictions, similar to those which Japan imposes, against the export to Korea of beef, butter, and to some extent cheese. New Zealand is anxious about a new tariff South Korea has set up against New Zealand wool, and exports of deer horn could be jeopardised by yet another recent import regulation. Judging by the comments of some New Zealand businessmen who went to Seoul for the meetings. South Korea businessmen apparently feel constrained when confronted with questions concerning market access. There is an admitted high level of government control of the domestic market, and the businessmen seem afraid to utter a word on any area which is tied to government policy.

Hence the limits of the usefulness of such a council still in

its infancy. It is to an extent a face-showing concern which is perhaps reflected in the number of New Zealand businessmen. including the delegation’s leader, who decided not to attend.

Although both sides, as can be expected to happen at such conferences, pointed to the

potential for two-way trade to expand, an infusion of openness on the part of the Koreans could be the first, and least complicated, step forward realising the proclaimed potential. For New Zealand, direct attention to the South Korean people and their market, rather than viewing it from

Tokyo, may help break the ice. Seoul must feel a little out in the cold when Wellington is placing such a heavy emphasis on Tokyo, just as New Zealand at times is despondent over the global lens catching Sydney with the idea that much of New Zealand can be taken in from there.