This landmark agreement constitutes Canada’s first free trade agreement in the Asia-Pacific region.
The Canada-Korea Free Trade Agreement will provide new market access opportunities for Canadian exports of beef and pork. The Agreement also recognizes the integrated nature of this industry in the North American economy, providing for rules of origin that will allow these world-class products to benefit from preferential treatment in South Korea. This is important to allow Canada to continue to compete with other exporters of beef and pork to South Korea, including the United States and the European Union, competitors that have benefited from lower tariffs since the implementation of the KORUS and Korea-EU FTA.
Canada’s share of South Korean fresh, chilled and frozen pork imports dropped from 14.2 percent in 2010 (i.e., before the implementation of the KORUS and Korea-EU free trade agreement) to 8.9 percent in 2013, representing a loss in export value of $22 million. During the same period, U.S. and EU market share increased by 10.2 percent to reach 76.3 percent.
Under the Canada-Korea Free Trade Agreement:
- duties of up to 25 percent for fresh/chilled and frozen pork will be eliminated in 5 to 13 years; and
- duties that range from 40 to 72 percent for fresh/chilled and frozen beef cuts, and some processed beef, will be eliminated in 15 years.
December 2014/ Government of Canada/ Canada.