Korea - Canada Free Trade Agreement
The Korea - Canada Free Trade Agreement provides for the elimination of certain import tariffs, notably for the following goods:
- Electric generation equipment
- Mechanical equipment including pumps, appliances, and other advanced machinery
- Electric motors, transformers, batteries, and capacitors
- Motor vehicles
- Mineral ore and processed products including graphite, manganese, copper, aluminum, and nickel
- Various products manufactured using above minerals and metals such as sheets, powders, bars, and plates
- Photovoltaic cells
The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if:
- wholly produced or obtained in the country (applicable to minerals, raw materials, and waste and scrap materials)
- products have undergone "sufficient production" in the respective Party (applicable to manufactured goods) according to the specific provisions provided for each good, defined largely as changes in the HS code or minimum Regional Value Content requirements.
The Investment provisions of the Agreement forbids performance requirements that require, as a condition of investment, export quotas, domestic content quotas, technology transfer, and other non-tariff barriers. It also carries national treatment and most-favoured nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.
However, the Agreement does allow either Party to provide additional benefits or advantages tied to the following conditions:
- Location of production in its territory
- Supply of a specific service
- Training and employment of workers
- Construction or expansion of certain facilities
- R&D activities
It also does not prevent either party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.
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