Korea, Canada trade agreement boon for seafood exports

The new Free Trade Agreement (FTA) between Korea and Canada will significantly increase Canada’s exports of lobster and other seafood to the country.

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.

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