Canada Korea Free Trade Agreement Tariff Treatment

April 8th, 2021  |  Published in Uncategorized

The Canada-Korea Free Trade Agreement, like all of Canada`s free trade agreements, contains specific rules of origin for all products. Rules of origin prevent agreements from entering countries other than Canada and South Korea (for example). B products that are simply transported by Canada to South Korea or vice versa). The rules of origin allow Canadian companies to use the privileged access gained by the Canada-Korea Free Trade Agreement. Commitments to strengthen the links between trade, investment and the environment. The Canada-Korea Free Trade Agreement will significantly improve access to Canada`s aerospace market by removing tariffs on all Canadian exports after entry into force. Canada`s aerospace exports to South Korea averaged $74.5 million per year between 2010 and 2012. Over the same period, South Korean aerospace imports averaged about $3.9 billion per year. Forest and forest products of significant export interest to Canada, including spruce wood, pine and fir, oriented sink, western hemlock wood, wooden beams and arches, and red cedar wood, must currently expect tariffs of between 5% and 8%. “The Lobes Council of Canada supports a free trade agreement between Canada and South Korea as it will significantly improve the competitiveness of our industry in South Korea.

The abolition of tariffs and improved market access for lobster exports are helping to ensure the long-term prosperity of our industry and the thousands of people who employ them in Atlantic Canada. “Asia`s rich markets are the closest frontier for Canada in our drive to eliminate tariffs and non-tariff barriers to trade and investment. Canada`s free trade agreement with South Korea will be the first step towards much more open access to Canadian exports. The agreement aimed to make Canada an even more attractive goal for investors and manufacturers, create jobs and opportunities for Canadians, create competitive conditions for Canadian businesses and make them more competitive on the world stage. Among the products of interest to Canada and with immediate access to tariff exemptions are that Canadian businesses will benefit greatly from the abolition of all tariffs on industrial products within 10 years. The Canada-Korea Free Trade Agreement will help ensure Canada`s competitive position and establish competitive conditions in this important Asian market, where our competitors – such as the United States and the European Union – already enjoy preferential access. The Canada-Korea Free Trade Agreement is protected from other types of restrictive trade measures that could reduce or nullify market access through the abolition of tariffs. For example, the agreement contains strict provisions on non-tariff measures, supported by a rapid and effective resolution of disputes, to ensure that gains in market access are not compromised by unjustified trade barriers.

The Canadian automotive industry is heavily dependent on trade and exports about 85 per cent of its production each year, with most exports going to the United States. However, Canadian automakers are increasingly looking for new customers beyond their traditional North American market.

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