Korean FTAs in Effect
The Korea-Canada Free Trade Agreement (FTA) went into effect on January 1, 2015
Canada, which is the 12th country to reach an FTA with Korea, is the world’s 11th largest economy and a member of G8. As Asia’s first country to reach an FTA with Canada, Korea will secure competitiveness in the Canadian market. Since Canada is rich in resources including petroleum, natural gas and uranium, the bilateral FTA will help Korea to secure the resources and the Korean companies to enter the Canadian market for energy and resource development.
Significance of the Agreement
Strengthening complementary economic structures
The FTA with Canada is predicted to provide us with opportunities to increase the trade of our main export items including automobiles, auto parts, electronic machinery and steel products with Canada and to secure stable sources of resource supplies as the country is our main energy provider
Enlarging various business opportunities and expanding cooperation
Even though Canada is one of the G8 member states and has great potential for economic cooperation with us as the 11th largest economy in the world (as of 2013, IMF), it currently remains only our 25th largest trading partner as of 2013. In this regard, the FTA with Canada is expected to strengthen bilateral cooperation in various fields.
Laying a stable foothold for advancing into the North American market
The Korea–Canada FTA laid a stable foothold for us to advance into the North American market, one of our main export markets. In particular, as Canada has signed its first FTA with an Asian country, it will contribute to securing the competitiveness of Korean products in the Canadian market.