The South Korea-Canada Free Trade Agreement: What you need to know

The South Korea-Canada Free Trade Agreement (SKCFTA) is a comprehensive trade agreement that was signed in 2014. The agreement eliminates or reduces tariffs on a wide range of goods and services between South Korea and Canada, and strengthens economic ties between the two countries.

Under the SKCFTA, South Korea and Canada have committed to open up their markets to each other`s goods and services, reduce trade barriers, and create new business opportunities. The agreement covers a broad range of sectors, including agriculture, manufacturing, services, intellectual property, and investment.

The benefits of the SKCFTA are significant for both countries. For South Korea, the agreement provides access to Canada`s large and diverse market, which will help to increase exports, promote economic growth, and create new jobs. For Canada, the agreement provides greater access to South Korea`s dynamic and growing economy, which will help to boost exports and diversify trade.

One of the key features of the SKCFTA is the elimination of most tariffs on goods traded between South Korea and Canada. This means that Canadian exporters will no longer face tariffs of up to 40% on products such as beef, pork, canola, and wheat when they enter the South Korean market. Similarly, South Korean exporters will benefit from the elimination of tariffs on products such as automobiles, auto parts, and electronics when they enter the Canadian market.

In addition to the elimination of tariffs, the SKCFTA also includes measures to facilitate trade and investment between South Korea and Canada. These measures include the protection of intellectual property rights, the liberalization of investment rules, and the simplification of customs procedures.

The SKCFTA also includes a dispute resolution mechanism that allows companies to resolve any trade disputes through a transparent and impartial process. This mechanism provides greater certainty and predictability for businesses and helps to ensure that the benefits of the agreement are fully realized.

Overall, the South Korea-Canada Free Trade Agreement is a win-win for both countries. By eliminating trade barriers and promoting economic cooperation, the agreement will help to increase trade, create new jobs, and boost economic growth in South Korea and Canada. For businesses that operate in both countries, the SKCFTA provides new opportunities to expand their operations and reach new markets.