Korea, Canada agree to launch FTA talks
Korea Times
Korea, Canada Agree to Launch FTA Talks
15 July 2005
By Seo Jee-yeon
Staff Reporter
South Korea has agreed to launch free trade agreement negotiations with Canada this month, the Ministry of Foreign Affairs and Trade said Friday.
They reached the agreement at a meeting in Dalian, China, held on the sidelines of small the Doha Development Agenda (DDA) talks.
The two sides will seek a comprehensive trade pact covering goods, services and investment. We will have the first round of talks during the fourth week of July in Seoul,'' Kim Hyun-chong, Minister for Trade, said in a press briefing.
It is the first time Korea has started FTA talks with a country in North America.The deal, if struck, will enable Korea to secure a stable bridge into the North American market, which takes 30 percent of the world’s gross domestic product (GDP),’’ he said.
The FTA will provide access to the FTAA (Free Trade Area of the Americas).
The ministry said free trade with Canada will nearly double bilateral trade to $10 billion from the current $5.5 billion. If the trade volume increases at this speed, about 38,000 jobs could be created.
Canada is the nation’s 6th partner for FTA talks following Chile, Singapore, the European Free Trade Association (EFTA), the Association of Southeast Asian Nations (ASEAN) and Japan.
The nation’s first FTA, made with Chile, took effect in April last year. Korea signed a FTA with Singapore in April this year, while it concluded FTA negotiations on July.
FTA talks with ASEAN are on the move, but negotiations with Japan have been in lagging since last year.
``There are no definitive schedules, but judging by past experience it should take about a year to conclude the talks," the ministry said.
But it may take more than a year to see a FTA with Canada materialize as Canadian carmakers and ship builders strongly opposed the trade deal with Korea.
Korean exports to Canada stood at $3.2 billion, while imports amounted to $2.1 billion in 2004.
Regarding the prospects of FTAs with other trade partners, the trade minister said that long-term plans were underway with the European Union and the United States, although the screen quota issue and beef have proven to be stumbling blocks in fostering closer relations with Washington.
