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Export increases under the Canada-Korea Free Trade Agreement

The Canada-Korea Free Trade Agreement (CKFTA) entered into force on January 1, 2015. Since then, it has made Canadian products more competitive in the Korean market. In the CKFTA’s first five years of implementation, Canada’s exports have increased across a number of sectors, including in agriculture, fish and seafood, and industrial goods. Canada’s exports to Korea increased to $7.6 billion in 2019, up from $6 billion in 2014.

Canada remains committed to promoting the CKFTA so that businesses can take advantage of the opportunities that flow from the Agreement.

Agriculture

Korea’s market for agriculture and agri-food holds enormous potential for Canadian exporters, especially as Korea’s middle class continues to grow and seek high quality products. Since January 1, 2019, 70% of Canada’s agricultural exports are eligible for duty-free access to Korea. By 2029, 99% of Canadian exports in this sector will be eligible for duty-free treatment.

Canada’s exports of agriculture and agri-food to Korea increased from $595 million in 2014 to $860.2 million in 2019Footnote 1.

Examples of Canadian products that have benefited from the CKFTA include:

Fish and seafood

Korea is a lucrative market with significant potential for Canadian fish and seafood producers. The CKFTA is creating important market access opportunities for the Canadian fish and seafood sector as a result of the reduction and elimination of Korea’s tariffs on all fish and seafood products. Since January 1, 2019, 87% of Canadian exports in this sector are eligible for duty-free access to Korea. All remaining Korean tariffs on Canadian exports in this sector will be eliminated by 2026.

Canada’s exports of fish and seafood to Korea more than doubled from $59 million in 2014 to $158.7 million in 2019. For example, Canadian exports of lobster grew from $36.7 million in 2014 to $138.9 million in 2019 (increase of 279%), having benefited from the elimination of Korean tariffs of 20%.

Industrial products

Industrial goods cover the majority of Canadian exports, including sectors such as:

Since January 1, 2017, 99% of Canadian exports of industrial goods are eligible for duty-free access to Korea. All remaining Korean tariffs on Canadian exports of industrial goods will be eliminated by 2024.

Korea imported $6.1 billion in industrial goods from Canada in 2019, up from $4.7 billion in 2014.

For example, the following Canadian exports have benefited from the elimination of Korean tariffs:

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