Minister Ng strengthens trade relations with Republic of Korea through Team Canada Trade Mission

From: Global Affairs Canada

News release

April 25, 2024 - Seoul, Republic of Korea - Global Affairs Canada

The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, has concluded her visit to Seoul after leading a Team Canada Trade Mission to South Korea. As a key initiative under Canada’s Indo-Pacific Strategy, these missions provide opportunities for Canadian and local companies to establish valuable connections with important players.

In Seoul, Minister Ng welcomed more than 240 people representing over 160 Canadian organizations from various priority sectors, including:

  • agriculture and processed foods (including fish and seafood)
  • clean energy and clean technologies
  • creative industries (audio-visual and interactive and digital media subsectors)
  • information and communications technologies
  • life sciences

Since the Canada-Korea Free Trade Agreement (CKFTA) entered into force in 2015, the trade relationship between Canada and the Republic of Korea has grown significantly.

While in Seoul, she witnessed the signing of three Memorandums of Understanding (MOUs), which exemplify the successful efforts of Team Canada in promoting international trade and business connections in the Indo-Pacific region.

The first MOU involved Calgary-based cleantech company TRIUM Environmental and South Korean artificial intelligence company BizData. Their innovative collaboration aims to address environmental challenges through cutting-edge technologies.  The second MOU was between Toronto-based Blimey VR Studios and South Korea’s XrisP, a multi-platform digital entertainment powerhouse. This partnership signifies the fusion of creativity and technology, opening up new avenues for both companies.  Finally, Minister Ng witnessed the signing of the MOU between Calgary-based Kanata Clean Power & Climate Technologies and Korean company GS Engineering & Construction Corporation (GS E&C) to co-invest in Kanata Clean’s Blue Ammonia project in Alberta. This project highlights Canada and Korea working together for a brighter, more sustainable future.

Minister Ng noted the importance of Canada’s energy resources and expertise in supporting the Republic of Korea’s energy transition goals. For example, LG Energy Solution (LGES), recently invested $5 billion in Canada through the establishment of an electric vehicle battery-cell manufacturing plant in Windsor, Ontario.  The plant is expected to create 2500 full-time jobs. She visited the Samsung Innovation Museum and met with Samsung Electronics senior executives to advance discussions on future collaboration. Minister Ng also visited Krafton, a South Korean gaming company that has made a substantial investment in Canada. She took that opportunity to emphasize Canada’s commitment to fostering more partnerships and investment opportunities in the creative industries sector.

Canada’s reputation as a reliable supplier of high-quality and sustainable products also supports the Republic of Korea’s food security goals. Minister Ng participated in a dynamic culinary showcase that promoted high-grade ingredients from Canadian companies supplying South Korean consumers with delicious food, including fruit, grains, pulses, meat, fish and other seafood products.

Partnership with business organizations is key to connecting Canadian businesses with South Korean partners and strengthening collaboration between the 2 countries. Minister Ng helped to make these connections at networking events, including with the Business Council of Canada, the Federation of Korean Industries and the Canadian Chamber of Commerce in Korea. At these events, Minister Ng encouraged Canadian and South Korean companies to work together, share their experiences and make meaningful connections to provide further economic benefits for Canadians and South Koreans alike.

While participating in the CKFTA Joint Commission meeting, Minister Ng invited Inkyo Cheong the Republic of Korea’s Minister for Trade, to Canada to co-chair the next meeting of the Joint Commission in 2025. Minister Ng also held separate bilateral meetings with Minister Cheong and Dukgeun Ahn, Minister of Trade, Industry and Energy, where they discussed implementing the Canada-Korea Comprehensive Strategic Partnership and deepening the 2 countries’ close commercial and investment ties.

Minister Ng also announced the dates for the next Team Canada Trade Mission. The mission to the Philippines and Indonesia will take place from December 1-6, 2024 and will build on the success of the previous Team Canada Trade Missions. This will give Canadian companies an opportunity to expand their presence in these dynamic markets and strengthen Canada’s position in global supply chains.

Quotes

“Through this Team Canada Trade Mission, we’ve helped Canadian businesses find new opportunities to grow in the Republic of Korea. During the last 4 days, I saw for myself why the Republic of Korea is such a great market for Canadian companies. I watched as Canadian businesses from different sectors made lasting connections and expanded their networks in the Republic of Korea. Canada’s strong trade ties with the Republic of Korea mean more opportunities for trade and investment, creating good jobs for Canadians across the country.”

- Mary Ng, Minister of Export Promotion, International Trade and Economic Development

Quick facts

  • The Indo-Pacific is Canada’s second-largest regional export market, after the United States, with annual 2-way merchandise trade valued at $257 billion in 2023.

  • Launched in November 2022, Canada’s Indo-Pacific Strategy creates opportunities to expand trade and investment, grow good jobs and build supply chain resilience.

  • As of 2023, the Republic of Korea was Canada’s seventh-largest merchandise trading partner, eighth-largest export partner and sixth-largest import partner.

  • Since it entered into force in 2015, the Canada-Korea Free Trade Agreement (CKFTA) has benefitted businesses, workers and communities on both sides of the Pacific.

  • In 2023, merchandise trade stood at $20.8 billion, an increase of almost 83% from pre-CKFTA days. Exports were valued at $6.9 billion and imports $13.9 billion for the same year.

  • South Korean direct investment in Canada was valued at $7.6 billion in 2022. South Korean direct investment in Canada is concentrated primarily in finance and insurance (39%), wholesale trade (31%) and manufacturing (10%).

  • Thanks to the CKFTA, 99% of Canada’s exports to the Republic of Korea have been eligible for duty-free access since January 1, 2024. By 2032, Korean tariffs will be eliminated on 99.75% of Canada’s exports.

  • Exports to the Republic of Korea supported over 20,000 Canadian jobs in 2020. Top sectors included mining (except oil and gas extraction), transportation and warehousing, and wholesale trade.

  • South Korea is the fourth Indo-Pacific market to host a Team Canada Trade Mission, following Japan, Malaysia and Vietnam.  Since launching these large-scale missions in 2023 under the Indo-Pacific Strategy, more than 400 Canadian organizations have been exposed to the market potential in the region. Participating businesses have already indicated valuable outcomes, including possible business and partnership deals in each market and MoUs signed on the ground in Vietnam and Korea.

  • Prime Minister Justin Trudeau and President Yoon Suk Yeol designated 2024 to 2025 as the Year of Cultural Exchanges between Canada and the Republic of Korea. To build momentum in the context of these exchanges, Parliamentary Secretary to the Minister of Canadian Heritage, Taleeb Noormohamed, led Team Canada’s creative industries delegation to promote the economic and export interests of the creative industries sector.

  • In September 2022, Prime Minister Trudeau and President Yoon upgraded relations between Canada and the Republic of Korea to a Comprehensive Strategic Partnership based on 5 shared priorities in the areas of values, security, prosperity, sustainability and beyond.

  • Minister Ng also made a stop at the War Memorial of Korea, where she paid tribute to the sacrifices made by Canadian soldiers who defended peace and freedom during the Korean War.

Associated links

Contacts

Huzaif Qaisar
Press Secretary
Office of the Minister of Export Promotion, International Trade and Economic Development
343-575-8816
Huzaif.Qaisar@international.gc.ca  

Media Relations Office
Global Affairs Canada
media@international.gc.ca
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