Watch above: Saskatchewan cattle producers are welcoming a free trade deal between Canada and South Korea
SASKATOON – A historic free trade deal has been struck between Canada and South Korea. Prime Minister Stephen Harper and his South Korean counterpart say the agreement will be a major boost for Canadian exporters.
This news was welcomed by the Canadian beef industry as it still recovers from bovine spongiform encephalopathy (BSE) more than a decade later.
“It’s another market and another market means maximizing the value of the animal and at the end of the day that means more value for the producer,” said Craig Douglas, CEO of the Saskatchewan Cattlemen’s Association.
This will be our country’s first free trade agreement with an Asian country.
“Much of the world’s economic growth over the next generation will be in Asia with this deal today we have open the door to opportunities that will boost Canadian prosperity now and for decades to come,” said Harper on Tuesday.
In 2002, Korea was the fourth largest export market for Canadian beef according to the Saskatchewan Stock Growers Association (SSGA).
“Korea lifted its BSE related barriers to Canadian beef in 2012. However, a restrictive 40 per cent tariff on fresh and frozen beef continued to frustrate our exports to Korea,” said SSGA President Harold Martens.
“The agreement announced today will see the tariff on fresh and frozen beef eliminated entirely in a staged process over the next 15 years.”
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According to the Canadian Cattlemen’s Association, as the tariff is eliminated and Canadian supply increases, the CCA expects to be back at pre-BSE levels of trade of $40 to $50 million with potential to grow.
“A ten-year period is a long time to go in a business and not make any money and to hang in there and now that’s why again this exciting and positive because there are producers that went through that and they stuck with the business,” said Douglas.
All involved say the beef industry definitely came out a winner in this deal but the uphill battle is still not over.
“You still have to get into the market and compete and the Americas have been there for a while, the European Union has been there for awhile,” said Malcolm Allen, federal NDP agriculture critic.
Synopsis of the Canada-Korea Free Trade Agreement (CKFTA) – Key Saskatchewan Interests
Korean Tariff Elimination
Grains and Specialty Crops | Duty Free |
| Wheat, including durum wheat (current duty of up to3%) | Immediate |
| Rye (current duty of up to 108.7%) | Immediate |
| Oats (current duty of up to 554.8%) | Immediate |
| Canary seed (current duty of 3%) | Immediate |
| Un-roasted malt (duty of up to 269%) | By year 11 |
Oilseeds and Oilseed Products | Duty Free |
| Canola seeds and meal (current duty of 10%) | Immediate |
| Mustard seed (current duty of 3%) | Immediate |
| Golden roasted flaxseed (current duty of 45%) | Immediate |
| Refined canola oil (current duty of 5%) | Within 3 to 5 years |
| Crude canola oil (current duty of 5%) | By year 7 |
Beef | Duty Free |
| Bovine genetics (current duty of up to 18%) | Immediate |
| Fresh/chilled/frozen beef (current duty of up to 72%) | By year 15 |
| Beef offal (current duty of 18%) | By year 11 |
Pork | Duty Free |
| Swine genetics (current duty of up to 18%) | Immediate |
| Pure-bred swine (current duty of up to 18%) | Immediate |
| Fresh/chilled/frozen pork (current duty of up to 25%) | Over 5 to 13 years |
| Pork offal (current duty of 18%) | At year 11 |
Pulses | Duty Free |
| Chick peas and lentils (current duty of 27%) | Within 3 to 5 years |
Honey | Duty Free |
| Natural honey (current duty of up to 243%) | With 100 tonne quota growing to 200 tonnes by year 21 |
Other | Duty Free |
| Non-agricultural Products | When the CKFTA enters into force, over 95% of South Korean tariff lines for non-agricultural products of interest to Saskatchewan will be subject to immediate duty-free access |
Machinery and Equipment | Duty Free |
| Weighing machinery (current duty rate of 8%) | Immediate |
Mineral Products | Duty Free |
| Potash (current duty up to 6.5%) | Immediate |
| Iron and steel products (current duty of up to 8%) | Immediate |
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