Canada-Korea Free Trade Agreement (CKFTA)
Provincial and Territorial Benefits
The Government of Canada is focused on creating jobs and opportunities for Canadians in every region of the country.
The government has therefore launched the most ambitious trade plan in Canadian history. In less than seven years, Canada has concluded free trade agreements with nine countries and is negotiating with 30 more. In addition, Canada has announced an historic agreement- in-principle with the 28-nation European Union that will open markets in the EU and give Canadian businesses access to half a billion affluent customers, creating thousands of jobs for Canadians.
Our long-term prosperity depends on our ability to take advantage of economic opportunities in emerging markets. The most recent Speech from the Throne committed to expanding trade in Asia to benefit Canadian workers, businesses and industries across the country. The Canada-Korea Free Trade Agreement delivers on that commitment.
On March 11, 2014, in Seoul, Prime Minister Stephen Harper and President Park Geun-hye of South Korea announced that Canada and South Korea had concluded negotiations on a new free trade agreement. This landmark achievement constitutes Canada’s first free trade agreement in Asia and will provide new access for Canadian businesses and workers to South Korea, the world’s 15th-largest economy and fourth-largest economy in Asia, with an annual GDP of $1.3 trillion and a population of 50 million people.
The Canada-Korea Free Trade Agreement will create thousands of jobs for hardworking Canadians by increasing Canadian exports to South Korea by 32 percent and boosting Canada’s economy by $1.7 billion. It will level the playing field for Canadian businesses competing with South Korea’s other trading partners, including the United States and the European Union, who already have free trade agreements in place with South Korea. The Agreement will benefit workers in every region of the country by increasing sales and exports and will give consumers more choice and lower prices.
South Korea is not only a major economic player in its own right and a key market for Canada: it also serves as a gateway for Canadian businesses and workers to the dynamic Asia-Pacific region as a whole. As a result, Canadian companies will be able to take better advantage of South Korea as a strategic base for expanding their presence in all of Asia and across its supply chains.
Being well-positioned in this region against our competitors is critical to Canada’s own long-term economic prosperity. The Canada-Korea Free Trade Agreement will tap into unrealized potential and create jobs and opportunities for our businesses and workers.
With more than 50 years of diplomatic relations between Canada and South Korea, a free trade agreement is the natural next step in a dynamic relationship between two nations committed to economic growth and development through free trade.
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