The Canada-Korea Free Trade Agreement (CKFTA) is an agreement that was signed by Canada and South Korea in 2014. The agreement is designed to promote trade and investment between the two countries by eliminating tariffs on a wide range of goods and services. One of the key provisions of the CKFTA is the establishment of a threshold for duty-free imports.
The threshold refers to the dollar value of goods that can be imported into Canada duty-free. The CKFTA sets a threshold of CAD $150 for goods that are imported from South Korea. This means that any goods that are imported from South Korea and are valued at CAD $150 or less will not be subject to import duties.
The establishment of a threshold is important because it helps to promote trade between the two countries by reducing the cost of importing goods. This can be particularly beneficial for small and medium-sized businesses that may not be able to afford the cost of import duties on higher-valued goods.
In addition to the threshold for duty-free imports, the CKFTA also includes provisions that address issues related to intellectual property, investment, and services. The agreement has also been praised for its strong environmental and labor standards, which are designed to protect workers and the environment in both countries.
Overall, the CKFTA represents an important step forward in promoting trade and investment between Canada and South Korea. The establishment of a threshold for duty-free imports is just one of the many provisions of the agreement that will benefit businesses in both countries. As the world becomes increasingly interconnected, trade agreements like the CKFTA will continue to play an important role in promoting economic growth and development around the globe.