Harper Government Highlights Benefits to New Brunswick of Canada-Korea Free Trade Agreement
Minister Rob Moore says deeper trade with South Korea, a gateway to the Asia-Pacific region, will create new jobs and opportunities for New Brunswickers
March 14, 2014 - Saint John, New Brunswick - Foreign Affairs, Trade and Development Canada
The Honourable Rob Moore, Regional Minister for New Brunswick and Minister of State (Atlantic Canada Opportunities Agency), accompanied by Rodney Weston, Member of Parliament for Saint John, today held an event at the Port of Saint John to highlight the many benefits the Canada-Korea Free Trade Agreement will bring to businesses and workers in New Brunswick. Earlier this week, Prime Minister Stephen Harper and President Park Geun-hye of South Korea announced the conclusion of negotiations on this new free trade agreement.
The Canada-Korea Free Trade Agreement will make Canadian exports more competitive in the South Korean market by levelling the playing field for New Brunswick businesses that are competing against exporters from countries that already have preferential access.
During the event today in Saint John, Minister Moore also took the opportunity to highlight a recent distribution agreement between Dizolve Group Corporation and a South Korean company to commercialize Dizolve’s laundry detergent products in South Korea. The company expects initial exports of over $1 million and significant future growth for the company.
New Brunswick stands to benefit significantly from preferred access to the South Korean market in many sectors.
The province’s fish and seafood exports to South Korea, for example, were worth an average of $5.1 million annually between 2010 and 2012. These exports face tariffs of up to 47 percent. The Canada-Korea Free Trade Agreement will create significant market access opportunities for Canada’s fish and seafood sector by eliminating South Korea’s high tariffs on products such as live and frozen eels and lobster.
The Canada-Korea Free Trade Agreement is a landmark achievement: it is Canada’s first free trade agreement in Asia, one of the fastest growing and most dynamic regions in the world. South Korea is not only a major economic player and a key market for Canada; it also serves as a gateway for Canadian businesses into the Asia-Pacific region.
- Nearly 70 percent of fish and seafood product tariff lines will be duty-free within five years and all remaining duties will be eliminated within 12 years.
- South Korea is an important economic partner for Canada, with an economy of $1.1 trillion and a population of 50 million.
- The Canada-Korea Free Trade Agreement is projected to boost Canada’s economy by $1.7 billion and increase Canadian exports to South Korea by 32 percent.
- On the day the agreement comes into force, Canadian businesses will immediately benefit from South Korea’s removal of duties on 81.9 percent of tariff lines. Once the agreement is fully implemented, South Korea will have removed duties on 98.2 percent of tariff lines.
- Canadian businesses will benefit from the same access to the South Korean market as their competitors, notably those from the United States and the European Union.
“Workers and families who rely on key sectors of New Brunswick’s economy for their livelihoods, including those in the fish and seafood, agricultural and agri-food, information technology, industrial and power-generating machinery sectors, stand to benefit from this trade agreement. Eliminating tariffs on our world-class products will create the conditions necessary to increase sales, which will directly benefit New Brunswickers through new jobs, new opportunities and higher wages.”
Rob Moore, Regional Minister for New Brunswick and Minister of State (Atlantic Canada Opportunities Agency)
“Our government is committed to expanding trade with new and emerging markets in Asia to benefit Canadian workers, businesses and industries across the country. The Canada-Korea Free Trade Agreement demonstrates our commitment to giving Canadian investors and exporters the tools they need to compete—and win—in the global marketplace.”
Ed Fast, Minister of International Trade
“The recently announced Canada-Korea Free Trade Agreement, along with valuable input from Canada’s Trade Commissioner Service, has significantly contributed to reciprocal credibility and enhanced business dealings for Dizolve and its Korean business partner.”
Nelson Wood, CEO, Dizolve Group Corporation, Moncton, New Brunswick
- How the Canada-Korea Free Trade Agreement Will Benefit New Brunswick
- Joint Statement by the President of the Republic of Korea and the Prime Minister of Canada
Office of the Honourable Ed Fast
Minister of International Trade
Director of Communications
Office of the Honourable Rob Moore
Minister of State (Atlantic Canada Opportunities Agency)
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