Korea, Canada trade agreement boon for seafood exports

The Canada-Korea FTA, finalized by the two country’s governments in mid-March, is expected to boost Canada’s economy by USD 1.7 billion (EUR 1.2 billion) and increase Canadian exports to South Korea by 32 percent. The agreement mandated that all tariffs, which averaged USD 0.165 (EUR 0.119), be dropped.

Canada exports around CDN 21 million (USD 18.7 million, EUR 13.5 million) worth of lobsters to South Korea annually, which is expected to increase with the new agreement, said Geoff Irvine, executive director of the Lobster Council of Canada in Halifax, Nova Scotia. “We hope that it will lead to more sales there for both processed and live lobster,” Irvine told SeafoodSource.

The new agreement also helps the Canada lobster fishery compete with the U.S., which already has a FTA with Korea. “We will be able to be able to compete straight on with the U.S. for the lobster we share. Obviously, we both compete against Australian and other lobster, but we share quite a bit,” Irvine said.

While lobster exports to South Korea are massive, Canada also exports around CAD 45 million (USD 40.1 million, EUR 29 million) worth of seafood to South Korea. “We export, scallops, shrimp, crab, and other species while lobster makes up around 40 percent of those exports,” Irvine said.

Irvine also expects Canadian’s lobster fishery — which has long been plagued by low prices — to benefit from the upcoming European Union FTA. The FTA has been finalized in principle, but still needs to be voted on by all the EU states and Canadian provinces, according to Irvine. “We hope it will mean better prices for everyone,” he said.

BC Wild Seafood Processors Applaud New Trade Agreement with Korea

 “The Canada-Korea Trade Agreement will help our producers to fulfil their potential and expand into new markets,” says Chris Sporer, Executive Director of the Seafood Producers Association of British Columbia, the largest organization of wild seafood processing companies on Canada’s Pacific coast.

The BC wild seafood industry exports approximately 80 percent of its production. As an export industry, access to world seafood markets is one of the key things needed for business success. International trade agreements enable the industry to achieve this access.

“Seafood is the most valuable agrifood food export commodity from British Columbia – about Can$1 (€0.651) billion per year, and the wild seafood industry accounts for almost two thirds of that export value,” notes Sporer.

Under the Canada-Korea Free Trade Agreement, all South Korean tariffs on fish and seafood products will be eliminated.  There will be immediate tariff elimination for Pacific salmon and almost 70 percent of Canadian fish and seafood products will be duty-free within five years.  All remaining duties will be eliminated within 12 years.

“The US-Korea free trade arrangement which went into effect in 2012 is eagerly being seized on by our Alaskan competitors and we were in danger of being left behind – we know there are benefits to a free trade agreement with Korea because our Alaskan competitors are already enjoying them,” notes Sporer.

Canada’s Pacific wild seafood industry generates approximately $810 million in annual revenues and contributes more in terms of GDP, employment and wages & salaries than either aquaculture or tidal recreational fishing.

The wild seafood industry on Canada’s Pacific coast is comprised of commercial fishing and seafood processing and provides a secure and nutritious food source for Canada and the world.  Canada also has a rigorous regulatory framework in place that protects the public health of Canadian and international seafood consumers and the integrity of domestic and international supply chains.

The Seafood Producers Association of British Columbia applauds the Government of Canada’s efforts to deepen and broaden our country’s trade with South Korea.