CANADA: South Korea trade pact to boost apparel exports
The newly signed Free Trade Agreement (FTA) between South Korea and Canada is set to boost exports for both countries, with apparel and footwear poised to benefit.
In a joint declaration, the countries’ respective Ministers of Trade hailed the FTA as “a signal achievement which will unlock the full potential of our bilateral economic relations and provide greater opportunities for economic cooperation in areas of mutual interest”.
Canada’s Department of Foreign Affairs, Trade and Development said the agreement, the country’s first with an Asian nation, was expected to boost Canadian exports by 32%, adding C$1.7bn to the domestic economy.
It would also provide parity for Canadian businesses competing with companies based in countries with existing FTAs with South Korea, particularly in the US and the EU.
Under the terms of the FTA, Korea will grant immediate duty-free treatment to 81.9% of Canadian tariff lines, and 90.2% of non-agricultural tariff lines, including 99.8% of tariff lines covering textile and apparel products.
Of particular interest to Canadian exporters will be the immediate duty-free treatment afforded to leather clothing and tanned or dressed fur skins.
Meanwhile, Canada will grant immediate duty-free treatment to 81.5% of Korean non-agricultural tariff lines, but only 5.7% of tariff lines related to apparel – a figure which will, however, rise to 100% in the next three years).
For footwear, duty-free treatment will be granted to 34.8% of tariff lines, with the remaining tariff lines phased out by the Canadian government within five or 11 years.
- Why should brands care about China cotton?
- Low labour cost countries linked to highest risks
- China cotton: implications and opportunities
- COMMENT: Skills or new technology?
- Who has signed the Bangladesh safety accord?
- South Africa to grow grass for recyclable textiles
- Activewear driving US apparel spend
- JC Penney share price falls on Q4 loss
- Delta Galil open to M&A as profit grows
- Sri Lanka and Bangladesh FTA talks underway
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Global market review of swimwear - forecasts to 2019