Canada–Korea Free Trade Agreement

{{Infobox treaty

| name = Canada–Korea Free Trade Agreement

| image = Park Geun-hye and South Korean delegation receive Stephen Harper and Canadian delegation on 11 March 2014.jpg

| image_size =

| alt =

| caption = South Korean President Park Geun-hye meets with Canadian Prime Minister Stephen Harper and his delegation at the Blue House in Seoul

| type = Free trade agreement

| context =

| date_signed = {{Start date|2014|03|11}}

| location_signed = Seoul, South Korea

| date_sealed =

| date_effective = January 1, 2015

| condition_effective =

| parties =

{{flag|Canada}}
{{flag|South Korea}}

| citations =

| language = Korean, English, French

| languages =

| footnotes =

}}

The Canada–Korea Free Trade Agreement (CKFTA; less often known as CSKFTA - Canada-South Korea Free Trade Agreement{{Cite web|title=Canada-South Korea Free Trade Agreement (CSKFTA) is Good News for BC|url=https://bcbc.com/insights-and-opinions/canada-south-korea-free-trade-agreement-cskfta-is-good-news-for-bc|access-date=2021-04-03|website=Business Council of British Columbia|language=en-US}}) is a free trade agreement between Canada and South Korea. The agreement was concluded at the Blue House in Seoul on 11 March 2014 by Stephen Harper, the Prime Minister of Canada, and Park Geun-hye, the President of South Korea.{{sfn|Vanderklippe|2014}}{{sfn|Office of the Prime Minister|2014}}{{cite web

| url = http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/index.aspx?lang=eng

| title = Canada-Korea - Free Trade Agreement

| website = Foreign Affairs, Trade and Development Canada

| accessdate = 22 April 2014

| archive-url = https://web.archive.org/web/20150821132841/http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/index.aspx?lang=eng

| archive-date = 21 August 2015

| url-status = dead

}} It is the first free trade agreement between Canada and an Asia Pacific nation.{{sfn|Lee|2014}} The agreement entered into force on 1 January 2015.{{cite web |title=Export gains since the CKFTA's entry into force |url=http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/korea-coree/export-gains-exportation.aspx?lang=eng |website=Canada-Korea Free Trade Agreement |publisher=Global Affairs Canada |accessdate=25 November 2018 |date=29 May 2018 |quote=The entry into force of the Canada-Korea Free Trade Agreement (CKFTA) on January 1, 2015}}

In the years since its ratification, Canada has aimed to eliminate 97.8% of its tariff lines for goods imported from South Korea, and South Korea has aimed to eliminate 98.2% of its tariff lines for goods imported from Canada.{{sfn|CBC News|2014}}{{Cite news |title=anada-Korea Free Trade Agreement |url=https://cwf.ca/wp-content/uploads/2017/10/TIP_CanadaKoreaTrdAgr_Backgrounder_REV_OCT2017.pdf}}

Background

The two countries began discussing establishing a free trade agreement in 2005, and held 14 rounds of bargaining sessions before finalizing the agreement.{{sfn|Vanderklippe|2014}}{{sfn|Lee|2014}} Canada's trade with South Korea had dropped by about {{fraction|1|3}} after the conclusion of the European Union–South Korea Free Trade Agreement and the Free trade agreement between the United States of America and the Republic of Korea.{{sfn|Vanderklippe|2014}}

Canada's primary exports to South Korea in 2012 were non-renewable resources such as mineral fuels and oils (31%) and ores, slag, and ash (8.4%), and renewable resources such as wood pulp and paper products (9%).{{sfn|The Globe and Mail|2014}} These totalled $3.7 billion in value, a decrease from $5 billion in 2011.{{sfn|The Globe and Mail|2014}}

South Korea's primary exports to Canada in 2012 were transportation products such as automobiles, trailers, and bicycles (40%), machinery and appliances (17%), and electrical machinery and equipment (15%).{{sfn|The Globe and Mail|2014}} These totalled $6.3 billion in value, a decrease from $6.6 billion in 2011.{{sfn|The Globe and Mail|2014}}

Tariffs

Canada agreed to eliminate tariffs on imported South Korean automobiles within two years of ratification of the trade deal.{{sfn|Lee|2014}} South Korea agreed to eliminate the 40% tariff on imported Canadian beef within 15 years of ratification of the trade deal.{{sfn|Lee|2014}} The tariff-free regime came into effect on January 1, 2015.{{cite web | url=https://www.tradecommissioner.gc.ca/korea-republic-coree-republique/157138.aspx?lang=eng | title=The Canada-Korea Free Trade Agreement: Benefits and Opportunities for the Canadian Automotive Sector | date=18 November 2019 }}

Reaction

Representatives of Canada's automotive industry criticized the deal, stating that it "rapidly eliminates tariffs on Korean imports and does not include retaliatory measures", such as the 'snap-back' provisions in the Free trade agreement between the United States of America and the Republic of Korea.{{sfn|Vanderklippe|2014}} Dianne Craig, chief executive officer (CEO) and president of Ford Motor Company of Canada, stated that "South Korea will remain one of the most closed automotive markets in the world under the deal negotiated by the Canadian government" because South Korea imposes non-tariff barriers on imported vehicles.{{sfn|Vanderklippe|2014}} The government stated that automotive disputes between the two countries will be resolved within 177 days.{{sfn|Vanderklippe|2014}} Canada is South Korea's fifth-largest export market for automobiles, where South Korean automakers had 12% market share in 2013.{{sfn|Lee|2014}}

Farmers and ranchers in South Korea have opposed the deal since it was first proposed.{{sfn|Lee|2014}} The South Korean government's Ministry of Trade, Industry, and Energy predicts that Korean cattle ranchers and the livestock sector in general will suffer from the increase in Canadian imports.{{Cite web |title=Netizens Angry as Korea signs FTA with Canada - koreaBANG |url=http://www.koreabang.com/2014/stories/netizens-angry-as-korea-signs-fta-with-canada.html |archive-url=http://web.archive.org/web/20230601044518/https://www.koreabang.com/2014/stories/netizens-angry-as-korea-signs-fta-with-canada.html |archive-date=2023-06-01 |access-date=2025-04-12 |website=www.koreabang.com |language=en-US}}

Notes

References

{{cite news|url=https://montrealgazette.com/business/South+Korea+Canada+reach+free+trade+deal+meant+help+Korean/9602509/story.html|title=SKorea, Canada reach free trade deal meant to help Korean automakers, Canadian ranchers (with video)|last=Lee|first=Youkyung|agency=Associated Press|newspaper=The Gazette|publisher=Postmedia Network|date=11 March 2014|accessdate=11 March 2014|archive-url=https://web.archive.org/web/20140312014312/http://www.montrealgazette.com/business/South+Korea+Canada+reach+free+trade+deal+meant+help+Korean/9602509/story.html|archive-date=2014-03-12|url-status=dead}}
{{cite news|url=https://www.theglobeandmail.com/news/politics/with-south-korean-deal-canada-securesfree-trade-foothold-in-asia/article17422168/|title=With South Korean deal, Canada secures free-trade foothold in Asia|last=Vanderklippe|first=Nathan|location=Seoul|newspaper=The Globe and Mail|date=11 March 2014|accessdate=11 March 2014}}
{{cite news|url=http://www.cbc.ca/news/politics/canada-south-korea-trade-deal-key-facts-and-figures-1.2567739|title=Canada-South Korea trade deal: Key facts and figures|agency=The Canadian Press|publisher=CBC News|date=11 March 2014|accessdate=11 March 2014|ref={{harvid|CBC News||2014}} }}
{{cite news|url=https://www.theglobeandmail.com/incoming/canadas-trade-with-south-korea/article10325304/?from=17418767|title=Canada's trade with South Korea|newspaper=The Globe and Mail|date=11 March 2014|accessdate=11 March 2014|ref={{harvid|The Globe and Mail|2014}} }}
{{cite web|url=http://www.pm.gc.ca/eng/news/2014/03/11/pm-announces-historic-free-trade-agreement-republic-korea|title=PM announces historic Free Trade Agreement with the Republic of Korea|publisher=Office of the Prime Minister|date=11 March 2014|accessdate=11 March 2014|ref={{harvid|Office of the Prime Minister|2014}}|url-status=dead|archive-url=https://web.archive.org/web/20140312013816/http://www.pm.gc.ca/eng/news/2014/03/11/pm-announces-historic-free-trade-agreement-republic-korea|archive-date=12 March 2014}}

External links

[https://web.archive.org/web/20150821132841/http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/index.aspx?lang=eng Canada-Korea Free Trade Agreement (CKFTA)] at Department of Foreign Affairs, Trade and Development
[http://international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/overview-apercu.aspx?lang=eng Canada–Korea Free Trade Agreement (CKFTA) - Overview] {{Webarchive|url=https://web.archive.org/web/20200611075359/https://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/overview-apercu.aspx?lang=eng |date=2020-06-11 }} at Department of Foreign Affairs, Trade and Development
[http://www.canadainternational.gc.ca/korea-coree/bilateral_relations_bilaterales/fact_sheet-fiche_documentaire.aspx?lang=eng Fact Sheet: Republic of Korea] at Embassy of Canada in Korea
[https://findrulesoforigin.org/home/agreement-detail?fta=259 Canada-Korea Free Trade Agreement page] on the Rules of Origin Facilitator, with member countries' status and access to legal documents.

Category:2014 in Canada

Category:2014 in South Korea

Category:Canada–South Korea relations

South Korea

Category:Free trade agreements of South Korea

Category:Treaties concluded in 2014