The CKFTA Decade

# The CKFTA Decade

Episode Summary

The Canada-Korea Free Trade Agreement turned 10 in 2025, and its impact has been transformative yet uneven. While bilateral trade has doubled, many sectors and thousands of Canadian SMEs have barely scratched the surface of what the agreement offers. This episode dives deep into the CKFTA's results, its underutilized provisions, and where the real opportunities lie for the next decade.

Guest Profile

Ideal guest: Trade policy expert or trade lawyer specializing in the CKFTA

Guest candidates:

- Senior policy analyst at the Asia Pacific Foundation of Canada - Trade policy partner at a Canadian law firm with Korea practice (e.g., Bennett Jones, McCarthy Tetrault) - Director of Trade Policy at the Canadian Chamber of Commerce or CAFTA

Talking Points

1. CKFTA by the Numbers - Canadian merchandise exports: C$4 billion (2015) to C$7.6 billion (2024) - Korean imports to Canada: C$8.2 billion to C$16.9 billion - Two-way services trade: C$1.8 billion (2018) to C$2.5 billion (2023) - Korea is now Canada's 8th-largest trading partner overall

2. Tariff Elimination Progress - 93% of Canadian exports now enter Korea tariff-free - Will reach 99.75% by 2032 - Remaining tariff lines: rice, some dairy, select agricultural products - Comparison with Korea's FTAs with EU, US, Australia, and UK

3. Sectors That Have Thrived - Coal and mineral resources (largest export category) - Pulp and forestry products - Agri-food: beef, pork, canola, and wheat - Automotive parts (both directions) - Aerospace components

4. Underutilized Sectors and Missed Opportunities - Professional services (architecture, engineering, consulting) - Digital services and SaaS - Health and biotech - Education and training services - Environmental and cleantech solutions

5. Services Trade Provisions - Market access commitments for financial services, telecom, and professional services - Mutual recognition of qualifications -- still largely unrealized - Cross-border data flow provisions - E-commerce chapter and its implications

6. Investment Provisions - Investor-state dispute settlement (ISDS) protections - National treatment and most-favored-nation obligations - Notable Korean investments in Canada: POSCO lithium, Hyundai auto investments - Canadian investment opportunities in Korea's deregulating sectors

7. Rules of Origin and How to Use Them - Qualifying for CKFTA preferential tariff rates - Certificate of Origin requirements and common mistakes - Cumulation provisions and their strategic value - Working with customs brokers on CKFTA compliance

8. Government Procurement Chapter - Thresholds for access to Korean government contracts - Which Korean government entities are covered - How to register on Korea's government e-procurement system (KONEPS) - Defense procurement opportunities beyond the submarine deal

9. Temporary Entry Provisions - Business visitor, intra-company transferee, and investor categories - How Canadian professionals can work in Korea under CKFTA - Practical tips for visa applications referencing CKFTA commitments

10. The Next Decade: CKFTA 2.0 Opportunities - Joint review committee recommendations - Digital trade and AI governance alignment potential - Critical minerals supply chain framework - Environmental and labor standards cooperation

Key Questions for Guest

1. What is the single most underutilized provision of the CKFTA that Canadian companies should know about? 2. How does the CKFTA compare to Korea's other major FTAs, and does Canada have unique advantages? 3. What are the most common mistakes companies make when trying to claim CKFTA tariff preferences? 4. How can service-sector companies benefit from the CKFTA when it is primarily discussed in goods-trade terms? 5. What changes would you like to see in a potential CKFTA update or review? 6. How has the CKFTA affected Korean direct investment into Canada? 7. What resources does the Canadian government provide to help SMEs navigate the CKFTA?

Listener Takeaways

The CKFTA has doubled bilateral trade, but most of the growth is concentrated in a few resource sectors

Services trade provisions are significantly underutilized and represent major opportunity

Proper use of rules of origin and certificates of origin can save companies significant tariff costs

Government procurement in Korea is accessible under the CKFTA but requires KONEPS registration

The next decade will see deeper integration in digital trade, critical minerals, and climate technology

Resources Mentioned

Rise Partners CKFTA Utilization Guide

Government of Canada CKFTA official page

EDC "Doing Business in South Korea 2026" country guide

Asia Pacific Foundation of Canada CKFTA 10th Anniversary backgrounder

KONEPS (Korea ON-line E-Procurement System) registration guide

CTA

Not sure if you are taking full advantage of the CKFTA? Rise Partners offers a free CKFTA Tariff Savings Audit for Canadian exporters. Visit risepartners.co.kr/ckfta-audit to request yours, and subscribe to Bridge to Korea for more deep dives.