Canada - English

Canada and South Korea Conclude Free-Trade Agreement 

Global Tax Adviser

 

March 18, 2014

 

Bob Sacco
GTA, Trade & Customs

 

Canada signed a free-trade agreement (FTA) with South Korea on March 11, 2014. Once in force, the FTA will eliminate duties and remove border tariffs on many imports and exports. For example, Canada will eliminate tariffs on imported South Korean cars within three to five years. South Korea's 8% duty on cars will be eliminated immediately when the agreement is implemented and the FTA will eliminate the tariff of up to 72% on imported Canadian beef within 15 years. The agreement is expected to be implemented by mid 2015, but some elements of the agreement could take up to 15 years to phase in.

Background
In 2005, Canada and South Korea began trade talks on a free trade agreement and held several bargaining sessions before signing the agreement in 2014. The Canada-South Korea Trade Agreement is the first Canada has with an Asian country.


Canada's primary exports to South Korea in 2012 were non-renewable resources, such as mineral fuels and oils and ores, slag, rash and renewable resources, such as wood pulp and paper products.

 

South Korea's primary exports to Canada in 2012 were transportation products, such as cars, trailers and bicycles, as well as machinery, appliances and electrical machinery and equipment.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to March 18, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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