The Comprehensive Economic Partnership Agreement (CEPA) between Canada and South Korea entered into force in January 2015. The agreement aims to strengthen economic cooperation and provide new opportunities for businesses in both countries.
Under the CEPA, Canadian companies gain better access to the Korean market and benefit from reduced tariffs and other trade barriers. This gives Canadian firms a competitive edge in key sectors such as agriculture, seafood, and forestry. In addition, the agreement provides Korean companies with easier access to the Canadian market and creates new opportunities for trade and investment.
The CEPA is expected to boost bilateral trade between Canada and South Korea by up to $1.7 billion annually. Several Canadian industries, such as pork and beef, have already seen significant increases in exports to Korea since the agreement took effect.
However, the CEPA has also faced criticism from some Canadian industries, particularly in the auto sector. The agreement allows Korean automakers to export up to 100,000 vehicles to Canada annually, which some Canadian auto manufacturers have argued gives Korean companies an unfair advantage in the Canadian market.
Despite these concerns, the CEPA has been praised by many as an important step towards strengthening economic ties between Canada and South Korea. The agreement is part of Canada`s broader efforts to increase its economic engagement in the Asia-Pacific region, and is expected to create new opportunities for Canadian businesses to expand and diversify their trade relationships.
In conclusion, the CEPA agreement between Canada and South Korea has been a significant development in strengthening economic ties between the two countries. While it has faced criticism from some sectors, the agreement is expected to create new opportunities for trade and investment, and to contribute to increased bilateral trade and economic growth.