SEOUL, KOREA - The Free Trade Agreement negotiations between Korea and Canada were concluded in eight years and eight months after the talks began in August 2005.Canada, accordingly, became Korea’s 12th FTA partner, while Korea became Canada’s first FTA partner among Asian countries.
The Korea-Canada FTA will clear the way for Korea to expand the shipments of its flagship items, including automobiles, to the world’s 11th largest economy, while allowing Canada to increase its meat exports to Korea.
Under terms of the agreement, Korea will remove import barriers on Canadian beef and pork, while Canada will eliminate its tariff barriers on Korean-made automobiles and home electronic goods.
Within ten years after the passage of the FTA, the two countries agreed to lower their tariffs on most items on a mutually beneficial basis.
Canada will lower its tariff on Korean-made cars, which currently stands at 6.1 percent, on a gradual basis and remove it in two years after the agreement’s passage. Automobiles are Korea’s most important export item to Canada, accounting for 42.8 percent or $2.23 billion, in Korea’s total exports to Canada last year.
