Released on March 11, 2014
Premier Brad Wall congratulated Prime Minister Stephen Harper on today’s announcement of the conclusion of negotiations on a free trade agreement between Canada and Korea.The agreement which the prime minister reached with Korean President Park Geun-hye is the first free trade deal that Canada has secured in Asia.
“The Canada-Korea Free Trade Agreement is significant on several levels,” Wall said. “For Saskatchewan, the agreement is a real opportunity as it provides a larger market in Asia for our grains, oilseed, beef and pork producers. This agreement shows that Canada is pivoting to the fast-growing Asian markets and I applaud the federal government for its efforts in that regard. The agreement with Korea must be a stepping-stone to pursue greater trade liberalization across the region.”
Total Canadian agriculture exports to Korea dropped by 65 per cent from just over $1 billion in 2011 to about $370 million in 2013 – a period during which both the European Union and the United States launched free trade agreements with Korea. Saskatchewan agri-food exports fared even worse, going from over $225 million in 2011 to approximately $50 million in 2013 – a decrease of nearly 80 per cent.
“For agricultural producers, this agreement will enable them to regain market share lost to American, European and other international competitors because of free trade agreements those countries already have with Korea,” Agriculture Minister Lyle Stewart said.
Over time, this agreement is expected to correct the competitive disadvantage exporters have experienced relative to their competitors in the United States and the European Union.
In 2011, the last year before the U.S. signed its free trade agreement with Korea, Saskatchewan exported $195 million of wheat to Korea. Last year, wheat exports had fallen to $33 million (more than 80 per cent drop) due to the favorable terms that our U.S. competitors had in Korea.
The same is true for canola oil. In 2011, Saskatchewan exported $22 million to Korea, but by 2013 this had fallen to $3 million (about 85 per cent drop), again due to favorable terms that the US had in its free trade agreement.
“We’ve always been a province of traders,” Minister responsible for Trade Tim McMillan said. “And efforts to further open up international markets can only lead to a stronger and more dynamic Saskatchewan economy.”
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For more information, contact:
Kathy Young
Executive Council
Regina
Phone: 306-787-0425
Email: kathy.young@gov.sk.ca
Cell: 306-526-8927