Seoul - South Korea and New Zealand agreed to strengthen their economic and trade ties and pursue a free trade agreement (FTA), both countries said Friday. The agreement came at a meeting between South Korean President Lee Myung Bak and New Zealand Prime Minister Helen Clark, who arrived in Seoul Thursday for a three-day visit.
Both sides welcomed the findings of a joint study conducted by private institutes that "indicated that an FTA between the two countries will render positive economic effects, such as increased economic growth rates and expanded bilateral trade," a joint statement said.
They agreed to hold intergovernmental preparatory talks to discuss a possible trade pact, including its scope and level of ambition, it read.
Both countries also plan to promote cooperation in the fields of energy and natural resources, it said.
Meanwhile, visiting US Commerce Secretary Carlos Gutierrez called on decision makers in Seoul and Washington to "marshal the political will" to push for swift parliamentary ratification of their own free trade agreement.
That trade pact, signed in June, is still awaiting ratification in the legislative bodies of both countries. It is the biggest trade pact for the United States since the 1994 North American Free Trade Agreement and the largest for South Korea.
In April, South Korea agreed to ease barriers for US beef imports imposed after mad-cow disease was detected in the United States. The move cleared one obstacle to the US Congress ratifying the pact.
