Canada-South Korea Free Trade Agreement Signed

On September 22, 2014, the high officials of Canada and South Korea signed Canada-Korea Free Trade Agreement (CKFTA), Canada’s first free trade agreement in the Asia-Pacific region.

Canada’s Prime Minister Stephen Harper and Park Geun-hye, President of the Republic of Korea, witnessed the signature of the CKFTA, expected to boost Canada’s annual GDP by CAD 1.7 billion, and increase Canada’s annual exports to Korea by over 30 per cent.

A wide range of sectors should benefit from this agreement, including industrial goods (e.g. chemicals and plastics, information and communications technology, aerospace, metals and minerals, etc.), agricultural and agri-food products, fish and seafood products, and forestry and value-added wood products.

The agreement covers all aspects of the Canada-Korea trade relationship, including trade in goods and services, investment, government procurement, intellectual property, environment and labour cooperation, and other areas of economic activity. It eliminates tariffs and reduces non-tariff measures that hinder market access for Canadian exporters and investors, bringing increased transparency and predictability to the business environment.

The CKFTA will also cover all other aspects of Canada-Korean trade. It should provide enhanced market access for Canadian service suppliers in areas such as professional services, environmental services, and business services, and temporary entry commitments that are the most ambitious Korea has agreed to in any of its FTAs..

The government procurement provisions are expected to place Canadian firms on an equal or better footing relative to their competitors in terms of access to Korea’s government procurement market, which is estimated at approximately CAD 105 billion annually.

Port Metro Vancouver believes that this important agreement will significantly boost Canada’s trade with South Korea, as well as provide strategic access for the Canadian import and export market to a key gateway to the wider Asia-Pacific region.

“This is a historic agreement,” said Robin Silvester, President and CEO, Port Metro Vancouver. “South Korea is the port’s third-largest trading market, and an important trade partner for Canada in Asia. We look forward to facilitating the increased trade to Asia this agreement will bring, to the benefit of Canadians across the country.”

 [mappress]

Press Release; September 25, 2014