Mr. Speaker, 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. For example, South Korean tariffs on flight simulators, cosmetics, ferro-alloys, gas turbines and scientific instruments, which run as high as 8%, will be eliminated.
This duty-free access will give Canadian products preferential access to the South Korean market and will create a level playing field with South Korea’s current free trade agreement partners.
Another key driver of economic activity in Quebec is the agricultural and agri-food products sector, which employed over 138,000 people in 2012.
From 2011 to 2013, Quebec’s agricultural exports to South Korea were worth an annual average of $93 million, led by pork, malt extract, food preparations and maple syrup.
Quebec will benefit from expanding exports of these and a wide variety of other products, including animal fats, soybeans, animal feed and fruits such as cranberries and blueberries.
The Canada-Korea free trade agreement will eliminate many agricultural tariffs immediately upon implementation of the agreement and will eliminate tariffs, in whole or in part, on 97% of current agricultural exports when the agreement is fully implemented. For example, South Korean tariffs on pork and most processed pork products, which face a current rate of up to 30%, will be eliminated. Tariffs on most food preparations, which run as high as 30%, will also be eliminated. For their part, exporters of blueberries and other berries will see current tariffs ranging from 30% to 45% eliminated. That is not all.
The Canada-Korea free trade agreement also contains robust provisions, which will ensure that Quebec agricultural and agri-food products are not undermined by unjustified trade barriers.
The chapter on sanitary and phytosanitary measures negotiated in the Canada-Korea free trade agreement is a good example. In this chapter, Canada and Korea have agreed to build on their shared commitments under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.
The chapter fully recognizes the rights of WTO members to take the sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, as long as they are based on science and are not used as disguised measures to unnecessarily restrict trade.
Under the agreement, Canada and Korea will establish a new bilateral sanitary and phytosanitary measures committee through which experts can collaborate and consult on sanitary and phytosanitary measures to enhance bilateral co-operation and facilitate trade by discussing issues before they become problems.
Since South Korea is a large net importer of agricultural and agri-food products, importing nearly $20 billion in 2013, Quebec stands to benefit considerably from the Canada-Korea free trade agreement.
Beyond tariffs, Canada and Korea recognize the importance of fostering co-operation and transparency in standards-related measures and have committed to encourage the use of internationally recognized standards and membership in multilateral arrangements to minimize duplicative certification and testing of products, including those related to medical devices.
The agreement also includes provisions aimed at minimizing the impact of technical barriers, which will in turn help maximize market access for Quebec’s exports.
To conclude, Canadian companies that do business abroad rely on fair, transparent, predictable and non-discriminatory trade rules. With the Canada-Korea free trade agreement, we are looking to provide the rules they need so they can compete and win abroad and build a stronger economy here at home.
No government in Canada’s history has been more committed to the creation of jobs and prosperity for Canadian businesses, workers and their families. Deepening Canada’s trading relationships in dynamic and high-growth markets around the world is key to these efforts.
