Canada, South Korea Cut FTA Deal, Boosting Canada Beef, Pork Access

March 11, 2014 01:14 AM
 
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via a special arrangement with Informa Economics, Inc.

South Korean autos would gain tariff-free access to Canada


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


Canada and South Korea have reached agreement on a free trade agreement (FTA) that is expected to come into force in 2015 after being approved by the two governments.

South Korea will gain access to the Canadian automobile market in a relatively short time – reports say between two to five years will be the timeline for removal of import duties on autos and parts from South Korea into Canada. Reports note the timeline for phasing out duties on South Korean autos into Canada is even quicker than the pace under the Korea-US FTA.

Meat trade impacts. The trade pact will see South Korea remove a 40 percent import duty on Canadian beef over 15 years and import tariff of 22.5 to 25 percent on pork over 13 years.

Autos and beef were keys in getting the deal completed, as talks between the two countries had started in 2005 but essentially ground to a halt when South Korea banned imports of Canadian beef in 2008 after the country discovered BSE. Removal of the South Korea ban in 2012 jumpstarted the talks which will see Canadian beef and pork gain duty-free access to the Korean market over time.


Comments: The trade deal with South Korea comes after Canada inked a pact with the European Union that also bolstered Canadian beef and pork access to that market. In addition, the pact with Canada is also being eyed by South Korea as a potential springboard to join the Trans Pacific Partnership (TPP) talks, something the Seoul government would like to see but so far has been elusive.


 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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