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Canadian agriculture and food sectors reaping benefits from FTA with Korea

June 3, 2016

Global Affairs Canada reports that the Canada-Korea Free Trade Agreement (CKFTA), which came into force on January 1, 2015, re-established a level playing field for Canadian companies in the Korean market.

In the CKFTA's first year of implementation, Canada has seen significant export gains compared to 2014 across a number of sectors, notably in agriculture, fish and seafood, forestry products, and industrial goods.

In the field of agriculture the Global Affairs indicates that:

  • Canada's exports of potatoes went from $5.4 million in 2014 to $12.8 million in 2015 (increase of 135%), have benefited from the elimination on January 1, 2015 of Korean tariffs of 18%;

  • Canada's exports of pig fat went from $2.6 million in 2014 to $7.8 million in 2015 (increase of 201%), have benefited from the elimination of Korean tariffs of 3%, and;

  • Canada's exports of oats went from $3.0 million in 2014 to $8.1 million in 2015 (increase of 168%), have benefited from the elimination of Korean tariffs of 3%.

For fish & seafood, the following Canadian exports have benefited from the reduction of Korean tariffs of 20%:

  • Prepared lobsters, from $80,000 in 2014 to $51 million in 2015 (increase of 63,457%;

  • Prepared crab and red crab meat, from $9,000 in 2014 to $2.3 million in 2015 (increase of 26,211%), and;

  • Prepared shrimps and prawns, from $18 in 2014 to $2.5 million in 2015 (increase of 1,412,594%).

In forest products, the following Canadian exports have benefited from the reduction of Korean tariffs of 5%:

  • Softwood lumber, from $42 million in 2014 to $80 million in 2015 (increase of 90%), and;

  • Maple, oak, ash and walnut lumber, from $2 million in 2014 to $3 million in 2015 (increase of 57%).

As for industrial products, the Department says the following Canadian exports have benefited from the elimination on January 1, 2015 of Korean tariffs of 8%:

  • Low voltage switch boards, from $12 million in 2014 to $27 million in 2015 (increase of 113%), and;

  • Automatic control panels, from $2 million in 2014 to $16 million in 2015 (increase of 751%).

Source: Global Affairs Canada (Department of Foreign Affairs, Trade and Development)

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