Canadian Wine Industry Applauds Canada-Korea Free Trade Agreement
OTTAWA, ON – March 11, 2014 – The Canadian Vintners Association (CVA), the national voice of the grape and wine industry, applauds the Government of Canada’s conclusion of the Canada-Korea Free Trade Agreement (CKFTA).
On March 10, 2014, Prime Minister Stephen Harper and Park Geun-hye, president of the Republic of Korea, finalized negotiations and announced the historic agreement. This is Canada’s first free trade agreement with an Asian market. As the world’s 15th-largest economy (GDP of $1.1 trillion), the fourth-largest in Asia, Korea offers substantial opportunities for business development.
Korea is currently Canada’s fifth largest wine export market by value, with 2013 exports of 37,000 litres, valued at $2.2 million. Korean wine consumption has increased 177 percent in the last decade, and the CVA believes that with CKFTA, wine exports to this strategic market of more than 50 million people will grow exponentially.
Within CKFTA, Korea will remove duties on 98.2 percent of its tariff lines covering virtually all of Canada’s imports, including a 15 percent tariff on Canadian wine. Upon ratification, all import tariffs on ice wine, which represents 96 percent of the total value of wine exports, will be eliminated immediately. All import tariffs on other wines will be eliminated over a 3-year period.
The CVA is confident that CKFTA will further level the playing field for the Canadian wine exports, removing import tariffs on wine and improving our competitive position against major wine exporting nations, such as the European Union, United States, Australia and Chile, all who have completed trade agreements with South Korea.
“South Korea is an important market for Canadian wine producers, as evidenced by the significant growth in the value of Canadian Icewine exports, which increased nearly 25 percent between 2012 and 2013,” stated Dan Paszkowski, CVA’s president and CEO. “With the implementation of CKFTA, the Canadian wine industry anticipates even stronger export growth in coming years.”
About the Canadian Vintners Association
The Canadian Vintners Association (CVA) is the national voice of the Canadian wine industry, representing more than 90 percent of annual wine production. CVA members are engaged in the entire wine value chain from grape growing, farm management, grape harvesting, research, wine production, bottling, retail sales and tourism. For more information, visit www.canadianvintners.com