Mr. Speaker, our government understands the importance of trade to our economy. We know that trade is responsible for one out of every five jobs in Canada and accounts for 64% of our country's annual income.
Trade is the cornerstone of the Canadian economy, and Canada's prosperity requires expansion beyond our borders and into new markets for economic opportunities that grow Canada's exports and investments. This is why our Conservative government is delivering on its commitment in the Speech from the Throne to expand trade with Asia.
I am pleased to speak today on the importance of the Canada-Korea free trade agreement, or CKFTA. This landmark achievement, Canada's first free trade agreement in the Asia-Pacific region, is a game changer. It will provide new access for Canadian businesses and workers to South Korea, which is the fourth largest economy in Asia with an annual GDP of $1.3 trillion and a high-growth market of 50 million potential customers.
South Korea is a major economic player in its own right and a key market for Canada. It is Canada's seventh largest overall merchandise trading partner, and third largest in Asia after China and Japan. Two-way trade between Canada and South Korea totalled more than $10.8 billion in 2013.
Canadians recognize Asia's growing economic strength and believe that closer economic ties with Asia are necessary for Canada's future prosperity. The Canada-Korea free trade agreement is projected to add thousands of Canadian jobs to the economy, increase Canadian exports to South Korea by 32% and boost Canada's economy by $1.7 billion.
South Korea also serves as a gateway for Canadian businesses and workers to the Asia-Pacific region. As a result of this agreement, Canadian companies will be able to use South Korea as a key base for expanding their presence in Asia and to access its regional and global supply chains. This Canada-Korea free trade agreement creates a mechanism to increase the already substantial people-to-people connections shared by South Koreans and Canadians.
I would like to discuss in some detail the concrete and real benefits that will be available to Canadian businesses, from coast to coast to coast, after the implementation of this agreement. Unlike the NDP who loves to oppose our trade agreements, our Conservative government recognizes that protectionist restrictions stifle our exporters and undermine Canada's competitiveness, which in turn adversely affects middle-class Canadian families.
The CKFTA will cover virtually all aspects of commercial activities between Canada and South Korea, including trade in goods and services, investment, government procurement, non-tariff barriers, environment and labour co-operation, and other areas of economic activity. The agreement increases potential market access for Canadian exporters and investors from every province and territory, and it would remove non-tariff barriers that hinder trade.
Additionally, under this agreement, Canada has secured greater opportunities related to temporary entry for business persons than those enjoyed by South Korea's other free trade agreement partners. This will provide an advantage to Canadian business persons needing to move between the two countries to conduct business.
Investment is a key component of the bilateral economic relationship between Canada and South Korea. It is an area that has great potential for growth, which is assisted by the increased certainty and transparency created by the CKFTA. Canada will be able to attract more investments, such as the 2013 opening of Samsung's first Canadian research and development centre in Vancouver, which focuses on the development of Samsung's enterprise security solutions and provides technical support for the company's diverse customer base. This centre already employs 60 people and more employment is expected.
There will also be many exciting opportunities in agriculture, fish and seafood, forestry products and the industrial goods sector. South Korea imports 70% of its food, representing a $20 billion market per year. However, Canadian agricultural exports to South Korea currently face high tariffs, which average over 50%. This places Canadian exporters at a serious disadvantage with their competitors, notably the United States, when trying to access the lucrative South Korean market.
With this agreement, Canadian businesses like Conestoga Meat Packers, a co-operative of 150 southern Ontario family farmers who have been producing premium-quality fresh pork for more than 30 years, will have the opportunity to be on equal footing with their competitors in the South Korean market. The elimination of tariffs on fresh, chilled, and frozen pork will give companies like Conestoga the opportunity for continued company growth, an integral component of their business plans. The CKFTA would provide Prince Edward Island-based Cavendish Farms with a golden opportunity to grow their presence in the South Korean market and to expand in the Asia-Pacific region as a whole.
While current South Korean duties range from 18% to a staggering 304% for potato products, the CKFTA would provide tariff elimination on most potato products, thereby helping to level the playing field with South Korea's other FTA partners. This means jobs and opportunities for Canadians.
On fish and seafood products, which are the economic mainstay of approximately 1,500 communities in rural and coastal Canada, the CKFTA contains an ambitious outcome that would eliminate 100% of South Korean tariffs once the agreement is fully implemented. Companies like Nova Scotia-based Clearwater Seafoods, North America's largest vertically integrated harvester, processor, and distributor of premium shellfish, will benefit from this strong CKFTA outcome.
In fact, we are already getting a taste of what increased seafood trade with South Korea will look like. Shortly after the announcement of the conclusion of negotiations on the CKFTA, Korean Air Cargo launched weekly service to South Korea from Halifax and is expected to transport a minimum of 40,000 kilograms of live lobster over the course of the summer. This would benefit Atlantic Canadians, as it would help to develop the South Korean market for fresh Canadian lobsters and provide a gateway for exports to other Asian markets.
South Korea imports $500 billion worth of industrial goods every year, including aerospace products. Canada's aerospace industry, which consistently ranks as one of Canada's top manufacturing sectors, will benefit from the immediate elimination of tariffs on turbo propellers, turbojet and propeller parts, and ground-flying training equipment. Tariffs on all aerospace goods would be eliminated upon implementation.
For Montreal-based CAE, a global leader in modelling, simulation, and training for civil aviation and defence, this agreement is very welcome news. CAE employs approximately 8,000 people in close to 30 countries and offers civil aviation and military and helicopter training services worldwide, including in South Korea. CAE is a prime example of Canadian companies that have recognized the value of South Korea as a regional base to serve clients in the Asian market. This type of investment would only increase once the CKFTA is implemented.
As we can see, the benefits to Canada and Canadians from this agreement are robust, multi-sectoral, and significant. Being well positioned in the Asia-Pacific region is critical to Canada's prosperity, and this agreement is a major step in realizing the untapped potential in Asia.
Of course, it is shameful that this past summer the NDP trade critic protested alongside well-known radical anti-trade activists, such as The Council of Canadians and the Canadian Centre for Policy Alternatives, at an anti-trade protest. Despite all the evidence that trade creates jobs, economic growth, and economic security for hard-working Canadian families, the NDP, together with its professional activist group allies, is ideologically opposed to trade.
Just as bad are the Liberals, who, during their 13 long years in government, completely neglected trade and completed only three free trade agreements, compared to our 43 free trade agreements. The Liberals took Canada virtually out of the game of trade negotiations, putting Canadian workers and businesses at severe risk of falling behind in this era of global markets.
To close, I am happy to hear that both parties have now decided to support this bill. I am very optimistic that they have learned from the past and that they will continue to support our trade agenda.