Mr. Speaker, the government is committed to protecting and strengthening the long-term financial security of hard-working Canadians.
It is with great pleasure that I rise today to talk about the Canada-Korea free trade agreement, a landmark agreement that will strengthen our trade and investment ties across the Pacific, increase the prosperity of both countries and result in job creation and enhanced opportunities for Canadian and Korean businesses, investors, workers and consumers
I would like to focus my remarks today on the benefits the Canada-Korea free trade agreement will bring to my home province of Quebec.
With Canadian agricultural exports to South Korea facing an average tariff rate of close to 53% over the 2011-13 period, Quebec businesses stand to gain considerably from the Canada-Korea free trade agreement. When fully implemented, the agreement will eliminate tariffs on over 99% of agricultural tariff lines. This duty-free access will not only give Quebec exporters preferential access to the South Korean market, but will also create a level playing field on which to compete and win.
Upon entry into force, the Canada-Korea free trade agreement will eliminate tariffs on almost all of Quebec’s key exports and provide access to new opportunities in the South Korean market. Quebec exporters will also benefit from non-tariff provisions that will improve conditions for exports in the diverse South Korean market. The Canada-Korea free trade agreement will, for example, ease regulatory barriers, reinforce intellectual property rights and ensure more transparent rules for market access.
I would now like to highlight some of the broad benefits for Quebec. The Canada-Korea free trade agreement will provide enhanced market access for key sectors of interest to Quebec, including industrial goods, agricultural and agri-food products, forestry products and professional services.
The Canada-Korea free trade agreement will also provide predictable, non-discriminatory rules for our investors and ensures that their investments will be protected in the South Korean market. Access to South Korea’s government procurement market will also be improved. Suppliers from Quebec will benefit from expanded opportunities at the central government level, putting them on an equal footing with suppliers from the United States and in a better position vis-à-vis others such as Japan and the European Union.
The strong provision on non-tariff measures, backed up by a fast and effective dispute settlement provision, will also contribute to facilitate trade between Quebec and South Korea.
Now, I would like to turn to some of the specific benefits the Canada-Korea free trade agreement will bring to Quebec in different sectors, including industrial goods and agricultural and agri-food products. The area of industrial goods is a significant component of Quebec’s economy. There are over 295,000 hard-working Quebeckers and their families that depend on the industrial goods sector for their livelihood, with the sector accounting for approximately 11% of Quebec’s GDP.
From 2011 to 2013, Quebec’s exports of industrial goods to South Korea were worth an annual average of $280 million. The Canada-Korea free trade agreement will significantly improve market access opportunities for Quebec’s industrial goods sector by eliminating all tariffs. Upon entry into force of the agreement, over 96% of South Korean tariff lines for industrial goods will be subject to immediate duty-free access, with the remaining 5% eliminated within 10 years.