The Free Trade Agreement (FTA) between Canada and South Korea was implemented in January 2015, providing greater market access and economic opportunities for both countries. The agreement aims to eliminate or reduce tariffs on a vast array of products and services, fostering increased trade relations and economic growth.
Canada is the first G7 nation to sign an FTA with South Korea, a strategically important economic partner for Canada in the Asia-Pacific region. South Korea is Canada`s seventh largest trading partner, with bilateral trade between the two countries valued at $15.5 billion in 2019.
Under the FTA, over 98% of tariffs on Canadian products are eliminated, including on key sectors such as forestry, agriculture, and seafood. Likewise, South Korea will see the removal of tariffs on key sectors, including automobiles, steel, and electronics.
The FTA also includes provisions to facilitate the movement of people between Canada and South Korea, allowing for increased business and cultural exchanges. The FTA’s “Investor-State Dispute Settlement” mechanism provides protection to investors from both countries by allowing them to pursue legal recourse if their investments are unlawfully expropriated or suffer from discriminatory measures.
The FTA between Canada and South Korea has already shown to be beneficial for both countries. Canada has seen an increase in exports to South Korea, including in the agriculture and seafood sectors. For example, Canadian beef exports to South Korea increased from $11 million in 2014 to $168 million in 2019. Similarly, South Korean automobile manufacturers have benefited from the FTA as they now have duty-free access to the Canadian market.
As both countries continue to work together, the FTA is set to bring further advantages to businesses and individuals in a wide range of industries. By reducing barriers to trade and investment, the FTA between Canada and South Korea has strengthened economic ties and set the stage for the growth of both economies, making it a clear win-win situation for both countries.
In conclusion, the Canada-South Korea Free Trade Agreement has proven to be a valuable partnership for both countries. With greater market access and economic opportunities, this agreement has fostered increased trade relations and has already resulted in numerous successes. Businesses from both countries can now benefit from the reduction of trade and investment barriers, and individuals can enjoy more opportunities for cultural and personal exchanges. The FTA between Canada and South Korea serves as an important model for other nations seeking to strengthen their economic partnerships in the Asia-Pacific region.
