South Korea, Canada Plan More FTA Talks

During a meeting between South Korean President Lee Myung-bak and Canadian Prime Minister Stephen Harper, it was agreed that the bilateral free trade agreement (FTA) talks, which were interrupted in 2008, should be resumed by the end of this year.

FTA negotiations between the two countries were put on ice in 2008 when South Korea maintained its import ban on Canadian beef over ‘mad cow disease’, leading to a challenge by Canada at the World Trade Organization (WTO). That ban was, however, lifted in January this year, and, in reply, Canada has also just terminated the relevant WTO dispute settlement panel.

At the meeting between Lee and Harper, it was therefore agreed to broaden the potential for increased trade and investment between the two countries by resuming the bilateral FTA negotiations.

The Canadian Cattlemen’s Association (CCA) has pointed out that South Korea remains an important market for Canadian beef, but that, following the implementation of the South Korea-United States FTA in March this year, the South Korean tariff on US beef imports will decrease by 2.7% per year until US beef is duty free in 2026.

As Canadian beef will remain subject to the full 40% tariff unless Canada and South Korea also conclude an FTA, the CCA has remarked that it looks forward to working with the Canadian government to complete a Canada-South Korea FTA as soon as possible.

June 20, 2012

Source: Tax News