As with all Canada-Korea free trade agreements, the Canada-Korea Free Trade Agreement has an exception section to preserve autonomy and flexibility in key areas of law and order, including culture, taxation, environmental protection and national security. South Korea is a major net importer of agri-food products and imports $20 billion in 2012. Canada, a major global supplier of high-quality agricultural products, is South Korea`s fifth largest supplier. The Canada-Korea Free Trade Agreement will develop these trade relations. As part of the Canada-Korea Free Trade Agreement, an SPS committee will allow experts to collaborate and consult with experts on SPS measures to improve cooperation and facilitate trade by discussing issues before they become problems. This will benefit Canadian fish and seafood exporters by helping to ensure that market access gains are not compromised by unwarranted trade barriers within the SPS. The Canada-Korea Free Trade Agreement will create thousands of jobs for Canadian workers by increasing Canadian exports to South Korea by 32 per cent and boosting the Canadian economy by $1.7 billion. It will establish the competitive conditions for Canadian companies competing with South Korea`s other trading partners, including the United States and the European Union, which have already entered into free trade agreements with South Korea. The agreement will benefit workers in all regions of the country by increasing sales and exports and will provide consumers with more choice and lower prices. “A canada-Korea free trade agreement will be good for Canada`s fish and seafood industry.
The U.S.-Korea free trade agreement, which came into force in 2012, is assiduously taken over by our Alaskan competitors and we cannot afford to be abandoned. We know that a free trade agreement with Korea brings benefits, because our Alaskan competitors are already benefiting. Reducing tariffs on seafood will open up the Korean market for high-quality Canadian seafood in the Pacific, creating jobs and prosperity for Colombians in Canada. Our long-term prosperity depends on our ability to take advantage of economic opportunities in emerging countries. The recent Speech from the Throne pledged to expand trade in Asia to use Canadian workers, businesses and industries across the country. The Canada-Korea Free Trade Agreement is in keeping with that commitment. “The Canada-Korea Free Trade Agreement is a central agreement for Canada. South Korea is one of the world`s fastest growing industrialized countries and this agreement is a turning point in Canada`s efforts to establish closer economic ties with the Asia-Pacific region. This agreement and others, as it likes it, is essential if Canada is to maintain a high quality of life for its citizens by creating new sources of export growth and international trade and investment opportunities.
After the agreement comes into force, 95.7% of industrial goods customs posts will be exempt from customs duties. 4.2% of additional tariff lines are exempt from tariffs in five years, with the remaining 0.1% in ten years. “The Canadian Feed Association welcomes the Canada-Korea Free Trade Agreement and its improved market access, as well as other free trade agreements for Canadian pet food manufacturers seeking to export high-quality pet food abroad.” Internationally, financial services is Canada`s largest source of foreign services trade and investment, and about half of Canada`s foreign direct investment stock comes from the financial services sector. With south-Korean and Canadian financial services markets developing, there is potential for increased participation by each country`s financial institutions in these markets.