June 13, 2014 – The tabling of the final text of the Canada-Korea Free Trade Agreement (CKFTA) brings improved market access for Canadian canola one step closer. While the agreement still needs to be implemented, the release of the final text marks another milestone on the road to tariff free access for canola seed and canola oil.
“We appreciate the Government of Canada’s sustained commitment to improving market access to South Korea,” says Patti Miller, President of the Canola Council of Canada (CCC). “Implementing the agreement as quickly as possible will be very valuable for the canola industry.”
The agreement includes the elimination of the 10% tariff that Korea currently applies to canola seed and tariffs on crude and refined oil. This will allow canola to have access equal to other oilseeds and oilseed products and will mean increased demand for Canadian canola. “Expanding market access is a key priority in our new strategic plan, Keep it Coming 2025,” says Miller.
With 90% of canola exported as seed, oil or meal, improving market access is important for the canola industry to earn the most returns from international markets. The benefits for canola once the CKFTA is implemented could be significant.
In recent years South Korea has imported Canadian canola products valued at $60-90 million annually. Miller said those imports could double under the new trade agreement.
Now that the agreement has been finalized, it will need to be implemented with the support of both the Canadian and Korean parliaments.
“We urge Parliament to support the implementation of the agreement by January 2015,” says Miller. “Members of Parliament in Canada and Korea now have an important role in ensuring the benefits of the agreement are realized.”
Canola contributes $19.3 billion to the Canadian economy annually and supports 249,000 jobs. The Canola Council of Canada is a full value chain organization representing canola growers, value added processors, life science companies and exporters. Keep it Coming 2025 is the strategic plan to ensure the canola industry’s continued growth, demand, stability and success – achieving 52 bushels per acre and 26 million metric tonnes of production by the year 2025.
Media may contact:
Heidi Rubeniuk, Director, Communications