A new trade deal with South Korea will remove duties on 86.8 percent of Canadian agricultural tariff lines and more than 95 percent of tariffs on industrial products, the Canadian Government has publicized.

Ministers and members of parliament have met with workers and business representatives across the country to inform stakeholders of the impact of the Free Trade Agreement (FTA) with Korea.

On the day the Canada-Korea FTA enters into force, Canadian businesses will immediately benefit from South Korea's removal of duties on 81.9 percent of tariff lines. Once the treaty is fully implemented, South Korea will have eliminated duties on 98.2 percent of tariff lines.

At present, South Korean tariffs are on average three times higher than Canada's, at 13.3 percent compared with 4.3 percent. Agricultural exports faced average tariffs of 52.7 percent in 2012.

According to International Trade Minister Ed Fast, the FTA demonstrates the Government's commitment to improving the competitiveness of Canadian investors and exporters. It is projected to boost Canada's economy by CAD1.7bn (USD1.5bn) and increase Canadian exports to South Korea by 32 percent.

Source: Tax News