How the CKFTA Will Benefit Canada's Key Economic Sectors
Aerospace | Agriculture and Agri-food products | Automotive | Canada’s World-Class Services| Consumer Products | Defence and Security | Fish and Seafood | Forest Products | Information and Communications Technologies | Metal and Mineral Products | Oil & Gas | Sustainable technologies
The CKFTA creates jobs, opens new markets and unlocks new opportunities for the benefit of Canadian workers and businesses in every region of our country. It is projected that the Agreement will boost Canada’s GDP by $1.7 billion and increase Canadian exports to Korea by over 30 percent.
The CKFTA, Canada’s first FTA in Asia-Pacific, represents a landmark achievement that provides increased and preferential access for Canadian businesses to Korea, the world’s 11th-largest and Asia’s fourth-largest economy. With its highly-educated population of 50 million and per-capita GDP of almost $35,000, Korea is one of Asia’s most dynamic markets.
With the CKFTA, millions of Canadians working in a wide-range of sectors will benefit from more trade and investment opportunities and duty-free access to Korea. This includes Canadians working in the following sectors: industrial goods (such as aerospace, chemicals and plastics, information and communication technology, medical devices, metals and minerals, and textiles and apparels), agricultural and agri-food products, wine and spirits, fish and seafood, and forestry and value-added wood products.
Once fully implemented, the CKFTA will result in the elimination of tariffs on virtually all trade between Canada and Korea and will increase market access opportunities across all sectors. Since the agreement entered into force on January 1, 2015, 85% of Canada’s exports benefit from duty free market access into Korea, and as of January 1, 2017, 93% of Canada’s exports are eligible for duty free access. Upon full implementation of the CKFTA on January 1, 2032, Korean tariffs will be eliminated on 99.75% of Canada’s current exports.
This duty-free access gives Canadian exporters preferential access to the Korean market, and levels the playing field with Korea’s current free trade agreement partners, such as the US and the EU.
Canada’s world-class service sectors, including professional, environmental and business services, benefit from improved market access. The Agreement also strengthens protection for two-way investment, reduces non-tariff barriers and facilitates the movement of business persons between the two countries.
For more information on the CKFTA and prospective benefits from this Agreement, please visit Canada-Korea Free Trade Agreement, or contact the Trade Commissioner Service in South Korea (seoul-td@international.gc.ca).
Consult the Canada Tariff Finder to explore tariff information for the South Korean market under the CKFTA, and other foreign markets with which Canada has a free trade agreement.
