Canada's Merchandise Trade with South Korea | Asia Pacific Foundation of Canada
In May Canada and the US began negotiations for a bilateral free trade . the model of the NAFTA has been used for the Canada-Chile relationship. A more significant free trade agreement was reached with South Korea in March. Canada and South Korea enjoy a significant trade and investment relationship with tremendous potential for growth. South Korea is Canada's. Canada's Merchandise Trade with South Korea, Canadian Imports from South Korea, Canadian Exports to South Korea. Merchandise Classification.
The Canada-Korea Free Trade Agreement looks to the future to provide opportunities for Canadian workers, businesses and investors The Canada-Korea Free Trade Agreement ensures that if South Korea reduces or eliminates restrictions on other foreign-based service providers or investors, Canadian companies and investors will automatically receive the same preferential treatment.
It also ensures that if South Korea provides additional flexibility to goods from other countries on many regulatory matters, including, notably, standards and taxes pertaining to vehicles and parts, Canadian goods would automatically be granted the same flexibility. This is an important step forward in the growing trade relationship between our two countries.
The Canada-Korea Free Trade Agreement will cover virtually all aspects of Canada-South Korean trade, including trade in goods and services, investment, government procurement, non-tariff barriers, environment and labour cooperation, and other areas of economic activity.
Canada has successfully negotiated an agreement that puts Canadian companies on a level playing field against key competitors who already enjoy preferential access to the South Korean market. The Agreement also opens market access for Canadian exporters and investors by removing non-tariff barriers that hinder trade. This deal, and others like it, is essential if Canada is to sustain a high quality of life for its citizens by seizing new sources of export growth and opportunities for international trade and investment.
Some were even making the difficult choice to shut down their marketing offices. A free trade agreement between Canada and South Korea will help our businesses and increase growth opportunities across many industries: Reducing and eliminating trade and investment barriers to this market will boost exports and create new jobs for Canadians.
This agreement should make Canada an even more attractive destination for investors and manufacturers, create jobs and opportunities for Canadians and level the playing field for Canadian businesses, making them more competitive on the global stage. Canada believes strongly that the liberalization of trade benefits the Canadian economy. Establishing free trade with South Korea puts Canadian businesses on an equal footing with some of their global competitors, particularly the United States and the European Union, with whom the country has already established FTAs.
Formalizing our relationship with South Korea ultimately provides Canada with another opportunity to expand our commercial presence and create critical growth in new markets. CFIB surveys show that high tariffs and navigating through the rules of different countries are two of the most difficult trade barriers faced by small businesses.
By addressing these challenges, the Canada-Korea Free Trade Agreement will give Canadian entrepreneurs better access to the South Korean market, which can serve as a launching pad for getting into the giant Asian market. Trade in Goods For over half a century, Canada and South Korea have enjoyed a stable trading relationship.
The Canada-Korea Free Trade Agreement will take this relationship to the next level, opening new markets to Canadian exporters and generating jobs and opportunities in every province and territory, benefiting Canadians from coast to coast to coast.
The chapters covering trade in goods make up the longest and most extensive section of the Agreement. Tariffs are taxes levied at the border that have the effect of increasing the costs to consumers of imported goods. Tariffs can be very high, making imported goods uncompetitive in the market.
On the first day the Agreement comes into force, South Korea will remove duties on Once the Agreement is fully implemented, South Korea will remove duties on For Canadian consumers, the elimination of tariffs under the Agreement stands to reduce the cost of imported products and expand choices for them that are increasingly cost-competitive. The Canada-Korea Free Trade Agreement will protect against other kinds of restrictive trade measures that could reduce or nullify the market access gained through the elimination of tariffs.
Non-agricultural goods Canada-Korea Free Trade Agreement highlights Once the Agreement is fully implemented, duties on all non-agricultural goods will be eliminated, including on industrial goods, fish and seafood products, and forestry and value-added wood products. Upon entry into force, Opening markets for industrial goods Canada is a nation endowed with a wealth of natural resources and people with the creativity and skill to turn them into a wide range of industrial goods.
If something can be manufactured, chances are a Canadian is producing it or working on ways to improve it. Inroughly 1. Text Alternative Top industrial goods exports from Canada to South Korea annual average value in millions of Canadian dollars Bituminous coal - 1, The Canadian market is already largely open to global imports, including those from South Korea.
Mutual tariff elimination will help make Canadian exports more price competitive with South Korean domestic production. The Canada-Korea Free Trade Agreement will also help Canadian exporters maintain a competitive footing with major competitors who have already implemented a free trade agreement with South Korea, such as the United States and the European Union. For more details on tariffs, please consult the Appendix.
Metals and minerals Canada, one of the most resource-rich countries in the world, is a global giant in mineral exploration and mining, producing more than 60 minerals and metals in Canada and operating in countries around the world. This sector employs more thanCanadians, creating employment opportunities from coast to coast to coast.
Directly and indirectly, aerospace employsCanadians.
Products of export interest include turbo propellers, turbo jet and propeller parts, and ground-flying training equipment. This agreement is imperative to restoring a level playing field for Canadian firms in the South Korean market, which is especially important given the considerable growth the aerospace industry will see in the Asia-Pacific region in coming years.
We congratulate the Government of Canada on this achievement, and thank its representatives for their ongoing commitment to boosting Canadian competitiveness in international markets. The industry produces inorganic and organic chemicals and resins and plastic packaging, with some 55 percent of production exported abroad. There is great potential for the expansion of exports.
Products of export interest include ethylene glycol, germanium oxides and carbides and catalysts. Products of export interest include ethylene polymers, polyamides and self-adhesive flat plastics.
CIAC members depend on international markets to thrive and grow, and the recent improvements in market access for Canadian products will make a difference. The Canadian industry spans the research-development-manufacturing continuum. Industry players include small and medium-sized companies developing diagnostics, biopharma-ceuticals, pharmaceuticals and medical devices, as well as global companies with research, development and manufacturing operations in Canada, serving both domestic and international markets.
Inthe manufacturing portion of the pharmaceutical sector alone employed 27, people. The Agreement will create new opportunities for enhancing the market presence of Canadian exporters in the life sciences sector by eliminating tariffs on all Canadian exports. Products of export interest include antibiotics, certain other medicines and anti-tuberculosis medications.
We are confident that this free trade agreement will support and enhance the Canadian medical technology industry, which will benefit Canadian patients and contribute to increased economic growth and job creation.
ICT companies in Canada employ some 86, Canadians in a knowledge-intensive industry that boasts world-class high-tech manufacturing capabilities. Intextiles employed 17, Canadians while clothing employed 22, The Agreement will provide additional export opportunities for Canadian textiles and apparel producers.
As a fast-growing economy and market of increasingly affluent consumers, South Korea has real potential for Canadian apparel exporters. In addition, we look forward to the government moving forward to conclude trade agreements with other priority markets in Asia, such as Japan.
Of the tariff lines with duties, The Canada-Korea Free Trade Agreement will also include a mechanism that will allow a party to the Agreement to raise concerns with the standards-related measures of the other party, with the goal of minimizing or eliminating their impact on trade. Both Canada and South Korea have negotiated provisions that will allow citizens of the other country to participate in the development of technical regulations and conformity assessment procedures on terms no less favourable than those that apply for their own citizens.
This will help minimize or eliminate barriers before they come into place. Reaping the benefits Canadian businesses stand to gain considerably when all tariffs on industrial goods are eliminated within 10 years. The Canada-Korea Free Trade Agreement will provide enhanced market access for value-added products such as lumber, plywood and oriented strand board.
As a result of increased demand for these products, and given the multiple value-added steps throughout the production process, benefits will be felt throughout the entire sector. New markets for custom home packages Viceroy Homes has designed, engineered and manufactured custom home packages for more than half a century.
The company is one of Canada's largest manufacturers of panelized wood-frame housing, kitchen cabinets, and hardwood flooring.
The Canadian Trade Commissioner Service - Korea, Republic
With facilities in Ontario and British Columbia, Viceroy proudly employs more than workers, most of them involved in production for export markets. Some of the Viceroy products exported to South Korea currently face an 8-percent tariff.
- Canada-Korea Free Trade Agreement
- Canada-Korea Free Trade Agreement (CKFTA)
- Canada–South Korea relations
With the trade agreement, Viceroy can be on an even footing with its competitors and is looking forward to expanding into the fast-growing and dynamic Asian market. Trade snapshot The forestry products sector encompasses wood products, including such products as cork and basketwork, and pulp and paper. The Canada-Korea Free Trade Agreement will provide a significant advantage for Canadian wood and forestry producers and exporters looking to expand market opportunities in South Korea.
Current duties average 2. Beyond tariffs The Canada-Korea Free Trade Agreement contains strong provisions on non-tariff measures that will ensure that market access gains in the forestry and wood building products sectors are not undermined by unjustified trade barriers. For example, the Agreement requires the use of internationally accepted standards in the absence of a compelling reason not to and contains strong transparency-related commitments that go beyond existing WTO obligations.
This will make it easier for Canadians and South Koreans to work together on the development of technical regulations and standards, and help to prevent the introduction of new technical barriers to trade, including in the areas of forestry and wood building products.
The Canada-Korea Free Trade Agreement also establishes various institutional mechanisms of relevance for this sector. For instance, the Agreement creates a subcommittee on trade in forest products that will facilitate addressing any issues related to trade in forest products.
The Agreement also provides for a working group—specifically related to wood building products—designed to facilitate trade through cooperation and information sharing, including in the areas of standards and regulatory issues. The Agreement also establishes a sanitary and phytosanitary SPS committee that will enable experts to collaborate and consult on forestry-related SPS issues.
Reaping the benefits Canada has a competitive advantage in the production of forestry products and is one of the top exporters of these products worldwide. Canadian producers and exporters of forestry products already have the capacity to export to Asian markets. The industry is the economic mainstay of approximately 1, communities in rural and coastal Canada.
Government of Canada
With a significant share of its global exports of fish products going to China, Japan and Hong Kong ranked second, third and fourth by market share, respectivelyCanada has a demonstrated capacity to export to Asian markets.
These markets accounted for InSouth Korea ranked ninth as an export destination for Canadian fish and seafood products. Under the Canada-Korea Free Trade Agreement, current duties of up to 20 percent on lobster products faced by Canadian exporters will be eliminated. Tariff elimination and improved market access for lobster exports helps to ensure the long-term prosperity of our industry and the thousands of people it employs in Atlantic Canada. This outcome on fish and seafood products will provide Canada with market access commensurate with and for key products such as lobster, better than that obtained by the United States under KORUS.
Beyond tariffs Canada and South Korea recognize the importance of ensuring that improved market access in the fisheries and seafood sector is supported by robust sanitary and phytosanitary standards provisions. Under the Canada-Korea Free Trade Agreement, an SPS committee will allow experts to collaborate and consult on SPS measures to enhance 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 undermined by unjustified SPS trade barriers. Under the Canada-Korea Free Trade Agreement, current duties of up to 47 percent on fish and seafood products faced by Canadian exporters will be eliminated. We know there are benefits to a free trade agreement with Korea because our Alaskan competitors are already enjoying them. Reducing tariffs on seafood will open up the Korean market to high-quality Canadian Pacific seafood, and this will translate into jobs and prosperity for British Columbians.
People-to-People Linkages Canada and Korea share strong people-to-people linkages stemming from historical connections, which are enhanced by increasing immigration and tourism flows, as well as student exchanges.
An average of 5, South Koreans immigrated to Canada annually between andcontributing to a community of approximatelyCanadians identifying themselves as being of Korean origin. Over 26, Canadians currently reside in South Korea, including about 3, language teachers. The Strategic Partnership between Canada and South Korea calls for stronger relations in key areas of common interest, including energy and natural resources; science, technology and innovation; and Arctic research and development.
Canada and Korea have also signed a Memorandum of Understanding on International Development Cooperation, which establishes a framework for closer cooperation between the two countries in three broad areas: Canada-Korea Security Relations Canadian interests in South Korea arise from a desire to ensure continued stability on the peninsula and regionally, and to enhance our important and growing bilateral relationship. Canada and South Korea are partners in promoting global peace and security.
We each have important alliances with the United States. The two Koreas technically remain at war, as hostilities were concluded with an armistice, not a peace treaty. Canada has also increased its role in exercises to contribute to stability and security in the region.
These exercises include strategic planning and consultations with military and diplomatic counterparts from participating partners and allied nations, and are designed to enhance the readiness of the Combined Forces Command on the Korean Peninsula.