By Teresa Wat
Minister of International Trade

VICTORIA - As we celebrate the beginning of a new year, British Columbia is also celebrating the beginning of a new trade relationship with one of our province's top trade partners in the Asia-Pacific region; South Korea.

On Jan. 1, 2015, the Canada-Korea Free Trade Agreement (CKFTA) officially goes into effect. This is a historic event; Canada's first free trade agreement with an Asian country. It is also a significant agreement for our province, as half of Canada's exports to South Korea originate from British Columbia.

For a number of years, B.C. and Canada have been competing with other countries that already have free trade agreements with South Korea, such as the United States, Australia and the European Union, and this agreement puts us back on equal footing with our competitors.

South Korea is B.C.'s fourth-largest trading partner, and with this trade agreement now in effect, exports of goods and services are expected to increase by 32% and positively impact B.C.'s forestry, seafood, agrifoods and processed foods sectors. The agreement is also expected to attract investment to grow and create jobs in key sectors of the B.C. economy, such as clean technology and liquefied natural gas.

Similarly, South Korean companies will benefit from Canadian tariffs being eliminated, including Korea's competitive electronics and technology sectors.

The B.C. government has been actively promoting closer ties with South Korea since negotiations first began over 10 years ago, and when the CKFTA was officially signed in September 2014, we ramped up our efforts to engage industry stakeholders on the benefits of the agreement.

For example, in November 2014, I was the first provincial trade minister from Canada to visit South Korea since the agreement was signed. When I was there, I worked hard to promote B.C.'s competitive advantages and the opportunities the free trade agreement will bring.

One of the sectors that will see significant benefits is B.C. seafood, with the removal of South Korean tariffs on fish and seafood products, which currently average 16.5%. Nearly 70% of fish and seafood tariff lines will be duty free within five years, and all remaining duties will be eliminated by 2026.

To promote these benefits while on the trade mission, we organized the first-ever B.C. seafood delegation to South Korea. This delegation had the opportunity to meet face-to-face with South Korean companies in order to explore business opportunities and discuss how they can work together to capitalize on the advantages of the CKFTA.

South Korean buyers are also coming to B.C. to learn more about our market and the benefits of the free trade agreement. For example, a sold-out seminar organized by the B.C. government brought together B.C. and South Korean seafood and agrifoods companies so they could work together to identify and take advantage of the new trade and investment opportunities. The success of this event is encouraging us to do more to ensure British Columbians know about the potential of this deal.

These are just a couple examples of the work our government is doing to promote the CKFTA, with more to come in 2015. And as businesses begin to take advantage of this trade agreement, the benefits will be seen in communities throughout B.C., be it through new products showing up on store shelves, to new export opportunities for goods and professional services.

So as we enter 2015 with high hopes and anticipation, so too does the B.C. government, as the CKFTA will be one of the driving forces behind a strong and prosperous B.C. economy this year and into the future.

Media Contacts:

Media Relations
Ministry of International Trade
250 356-0613