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EXTRA Vol. 139, No. 1Canada Gazette Part I OTTAWA, MONDAY, JANUARY 31, 2005 DEPARTMENT OF INTERNATIONAL TRADE CONSULTATIONS ON POSSIBLE FREE TRADE AGREEMENT NEGOTIATIONS WITH THE REPUBLIC OF KOREA The Government of Canada is seeking the views of Canadians on the scope of a possible free trade agreement (FTA) between Canada and the Republic of Korea (South Korea). This notice is part of the Government of Canada's domestic consultation process with business, citizen-based organizations and individual Canadians, as well as with the provincial and territorial governments, to obtain advice and views on priorities, objectives and concerns to help define the scope of this possible FTA initiative. Background A high-growth and rapidly advancing market, Korea is widely recognized as a 'gateway' to Northeast Asia, a region of strategic importance to global value chains. With an estimated 48 million inhabitants and a GDP of $848 billion, Korea is the largest of the four "Asian tigers" (Taiwan, Hong Kong and Singapore). Korea's remarkable, and rapid, recovery from the 1997 Asian financial crisis has resulted in its emergence as the 12th largest merchandise trading nation in the world, with total merchandise trade in 2003 reaching $522 billion. Korea has demonstrated a strong commitment to promoting a favourable investment climate and positive domestic policy reform. Canada and Korea are established trade and investment partners. In 2003, two-way merchandise trade was over $7 billion (Canada exported $1.94 billion and imported $5.1 billion), and two-way direct investment was approximately $889 million (Canadian direct investment in Korea was $609 million). In 2002, two-way trade in services was $871 million (Canada exported $653 million and imported $218 million). On November 19, 2004, Prime Minister Martin and South Korean President Roh announced that Canada and Korea would begin talks to explore the feasibility of negotiating an FTA. An FTA between Canada and Korea has the potential to enhance not only Canada's important bilateral economic relationship with Korea but also to strengthen Canada's presence in the dynamic Northeast Asia region. Commencing in late January 2005, government to government exploratory discussions will proceed in parallel with this domestic consultation process. It is expected that a decision on whether or not to negotiate an FTA will be taken in mid-2005. Canada's interest in Korea lies in three main areas: tapping into the value chains of globally competitive production and supply from Korean corporations; selling raw materials and key competitive technologies and products; and employing Korea as a strategic base to establish an export and manufacturing presence in Northeast Asia. Current and potential export growth exists in many sectors, including wood pulp, mineral fuels, metals, electrical machinery, shellfish and a wide variety of agricultural products. Korean exports to Canada cover a broad range of sectors, including vehicles, electrical machinery, computers, rubber, and steel. The complementary nature of the existing Canada-Korea trade relationship lowers the risks of key irritants derailing negotiations while enhancing the potential for a win-win outcome in the form of a successful FTA. It is also expected that an FTA could serve as an important building block to greater economic ties with other Northeast Asian economies such as China and Japan. Korea has already negotiated FTAs with Chile and Singapore and considers an FTA with Canada a high priority. Korea is currently negotiating an FTA with Japan and is interested in pursuing other countries in the near-term, including the United States, the European Free Trade Association (EFTA) countries, China, Mexico, Australia and the Association of Southeast Asian Nations (ASEAN). General bilateral relations Overall, bilateral relations are very good. Canada and Korea often have similar positions on many multilateral issues and consult closely on a wide range of issues. In particular, Korea has expressed appreciation for Canadian support in its dealings with the Democratic People's Republic of Korea (DPRK — North Korea). A Special Partnership Working Group (SPWG) was launched by the governments of Canada and Korea in April 1994 to identify ways to increase and strengthen bilateral economic ties. The SPWG is helping to increase co-operation in areas such as trade, investment, industrial co-operation, technology transfer, and development assistance to developing countries in addition to fostering closer collaboration in international forums such as the Asia-Pacific Economic Cooperation (APEC) and the World Trade Organization (WTO). In addition to the SPWG, Canada and Korea have a number of bilateral initiatives designed to enhance our economic relationship, including the Air Services Agreement (1989), the Arrangement on Industrial and Technological Cooperation (1995), the Agreement on Social Security (1997), and the Science and Technology Arrangement (2002). Internationally, co-operation between Canada and Korea extends across a range of other fora, including the Organisation for Economic Co-operation and Development (OECD), the United Nations (UN), and the G-20. Additional information on Korea and Canada's relationship with Korea can be found at — International Trade Canada — Foreign Affairs Canada — International Trade Canada Country Profile: Republic
of Korea — Canadian Trade Commissioner Service — The Canadian Embassy in Seoul — Asia Pacific Foundation of Canada — The Korean Embassy in Ottawa — Korean Overseas Information Service (KOIS) — Korean Institute for International Economic Policy — The Korea Trade — Investment Promotion Agency Submissions by interested parties It is essential that the Government of Canada be fully aware of the interests and potential sensitivities of Canadians with respect to this initiative before a decision is made on whether or not to proceed. We would welcome advice and views on any priorities, objectives and concerns relating to a possible FTA with Korea. In particular, we are seeking views with respect to the following: Opinions on areas of export interest, including products for which Korea should eliminate barriers. The Government is also seeking views on Korean products which currently face difficulty accessing the Canadian market, including opinions on the staging of any concessions. Views on general rules of origin issues and/or advice on appropriate rules of origin or procedures for specific products or sectors. Suggestions on "trade facilitation" issues (e.g. significant impediments related to import procedures). Advice, views and experiences with customs-related or immigration issues for both business travellers and commercial goods entering and/or leaving Korea. Advice and views on general investment issues, the types of problems faced by Canadian investors in Korea, and rules that would provide better access, treatment, protection and predictability for Canadian investments. Advice and views on general cross-border trade in services, service sectors in Korea to be targeted for further liberalization, and opinions on regulatory measures affecting access, including those which may restrict trade in services. Advice and views on competition policy matters, including development of possible co-operation mechanisms. Views on ways to reflect the interests and values of Canadians in the areas of environmental protection, basic workers' rights, human rights and other social concerns, as they relate to Korea. Views on other related issues not mentioned above. All interested parties are invited to submit their views by March 1, 2005. Please be advised that any information we receive as a result of this consultation will be considered public information, unless explicitly stated otherwise. Submissions should include 1. The contributor's name and address and, if applicable, his/ her organization, institution or business. 2. The specific issues being addressed. 3. Precise information on the rationale for the positions taken, including any significant impact it may have on Canada's domestic or foreign interests. Contributions can be sent by electronic mail, facsimile or mail to consultations@international.gc.ca (electronic mail), (613) 944-0757 (facsimile), Trade Negotiations Consultations (Korea), Regional Trade Policy Division (EAI), International Trade Canada, Lester B. Pearson Building, 125 Sussex Drive, Ottawa, Ontario K1A 0G2. |
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