Innovation, Business and Rural Development
Fisheries and Aquaculture
March 11, 2014

Canada-Korea Trade Agreement Will Create New Opportunities and Improve Competitiveness

Newfoundland and Labrador to Gain Tariff-Free Access and New Access to South Korean Market

Newfoundland and Labrador will gain tariff-free access to markets in South Korea with the signing of the Canada-Korea Free Trade Agreement. The agreement will increase trade for fish and seafood products, as well as create new opportunities for the industrial goods and ocean technology sectors in Newfoundland and Labrador.

“The trade agreement will place Newfoundland and Labrador companies on a level playing field with other key competitors who enjoy preferential access to the South Korean market, and opens market access by removing non-tariff barriers that hinder trade. This is a positive agreement for Newfoundland and Labrador, and we are pleased with the agreement the Federal Government has negotiated which strengthens the environment for business growth in our province.”
- The Honourable Terry French, Minister of Innovation, Business and Rural Development

The Canada-Korea Free Trade Agreement is Canada’s first free trade agreement with Asia. The trade agreement covers trade in goods and services, investment, non-tariff barriers, and other areas of economic activity. Benefits for Newfoundland and Labrador include: duty free access for fish and seafood including molluscs, crab, shrimp and lobster; duty-free access for industrial goods, including maritime radar apparatus and industrial machinery; enhanced market access for many agricultural and agri-food products, including seal meats and food preparations; improved access for professional services; and predictable, non-discriminatory rules for Canadian investors.

The trade agreement will diversify export markets for the fishing industry by eliminating prohibitive tariffs on fish and seafood entering Korea. The Provincial Government has reserved its right to enforce minimum processing requirements for fish and seafood destined for the Korean market.

“Achieving tariff-free access to the Korean seafood market should strengthen the provincial fishing, aquaculture, and sealing sectors in the coming years by creating even more international demand for Newfoundland and Labrador’s world class products. It has been important in the past to enforce the province’s minimum processing requirements for Asian markets, and I am pleased to note that our minimum processing requirements will be maintained within the terms of this exciting new trade agreement.”
- The Honourable Keith Hutchings, Minister of Fisheries and Aquaculture

Through sound fiscal management and responsible decisions, the Government of Newfoundland and Labrador is strengthening the business environment, encouraging the development of innovative industries and building a vibrant economy.

QUICK FACTS

• The Canada-Korea Free Trade Agreement will eliminate tariffs on almost all of Newfoundland and Labrador’s key exports and will provide access for new opportunities in the South Korean market.
• The free trade agreement will increase trade for Newfoundland and Labrador fish and seafood products, as well as create new opportunities for the industrial goods and ocean technology sectors.
• Provincial fish and seafood products currently face tariffs of up to 20 per cent. This agreement will eliminate 100 per cent of tariffs over a 12 year phase-out period. The agreement will also provide immediate duty free access for 95 per cent of tariffs related to industrial products. The remaining five per cent of tariffs will be phased-out over 10 years giving the Province 100 per cent duty free access.
• Newfoundland and Labrador’s exports to South Korea (2010-2012) are valued annually on average at $21.6 million, including an average of more than $11 million annually in fish and seafood products.
• The trade agreement with Korea is the first of its kind for Canada in Asia.

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2014 03 11                                        4:45 p.m.