With the Canada-Korea Free Trade Agreement (CKFTA) in place since Jan 1, 2015, Canada has an opportunity to step up as a competitive player in the South Korean market, according to a new paper released by the Canada West Foundation.

Western Canada is especially well positioned to benefit from the new agreement, say report authors Carlo Dade, Director of the Centre for Trade & Investment Policy and policy analysts Chendong Li and Naomi Christensen.

The western provinces already account for more than 37 per cent of Canada’s existing merchandise trade with South Korea, and CKFTA will significantly reduce tariffs on many of these goods. Western provinces produce many of the products sought after in the South Korean market.

The fact that South Korea relies on imports to meet 97 per cent of its energy demand is only the tip of the iceberg. Western Canada can also benefit significantly from the potential to increase exports of B.C.’s industrial goods, forestry, and seafood sectors and the Prairie’s agricultural products, logistics expertise and more.

South Korea is an important global market. With 50 million people and an annual GDP of $1.3 trillion, it is the world’s 15th largest economy. Many of Canada’s competitors already have trade deals with South Korea, including the United States, Australia, Chile and Peru.

The CKFTA isn’t without potential challenges. Some U.S. companies have been experiencing issues following the U.S – Korea trade deal, such as ensuring country-of-origin labelling meets South Korean standards. Canada may face similar challenges, and must also address its reputation for delays caused by slower review and approval processes for natural resources and infrastructure projects.

Read the full Canada-Korea Free Trade Agreement report here: