Last April, a Canadian trade mission, known as the Team Canada Trade Mission (TCTM), visited South Korea for five days, led by Mary Ng, Canada’s Minister of Export Promotion, International Trade, and Economic Development. The delegation comprised over 250 participants, representing more than 155 Canadian companies and organizations, all seeking to explore business opportunities in S. Korea.
The TCTM’s visit to South Korea was driven by the Canadian government’s belief that the Indo-Pacific region presents significant economic opportunities. This belief led to the launch of Canada’s Indo-Pacific Strategy in Nov. 2022, which included visits to key countries such as S. Korea, Japan, Vietnam, and Malaysia.
Among these nations, Canada sees substantial opportunities in S. Korea, citing the close diplomatic and economic ties between the two nations.
In 2022, S. Korean President Yoon Suk-yeol visited Canada, elevating the bilateral relationship to a ‘Comprehensive Strategic Partnership (CSP)’. In return, Canadian Prime Minister Justin Trudeau visited S. Korea in 2023, signing a Memorandum of Understanding (MOU) to strengthen cooperation on critical minerals and clean energy supply chains.
The trade relationship between S. Korea and Canada is both complementary and balanced. As of 2023, S. Korea ranks as Canada’s 7th largest merchandise trading partner, its 8th largest export market, and its 6th largest source of imports. Conversely, Canada is S. Korea’s 11th largest trading partner.
Notably, Canada is the only country in the Asia-Pacific region to have signed a bilateral Free Trade Agreement (FTA) with South Korea, known as the Canada-Korea Free Trade Agreement (CKFTA), which was established in 2015 and this year marks the 10th anniversary of the CKFTA.
To commemorate the 10th anniversary, The Chosun Daily conducted an interview with Tamara Mawhinney, the Canadian Ambassador to South Korea, at the Canadian Embassy in Seoul.
Ambassador Mawhinney, who has served in S. Korea since Aug. 2022, has over 32 years of experience with Canada’s Foreign Service. Her previous postings include New York, Paris, and Geneva, but South Korea is her first assignment in Asia.
“Canada and South Korea enjoy a close and friendly relationship, rooted in a long history, including Canada’s participation in the Korean War. Last year, the two countries celebrated the 60th anniversary of diplomatic relations,” Ambassador Mawhinney stated. She added, “I feel fortunate to be here at a time when Canada and South Korea have such a vibrant relationship.”
Looking ahead, Ambassador Mawhinney highlighted that 2024-2025 has been designated as the Year of Canada-Korea Cultural Exchange, as agreed upon by President Yoon and Prime Minister Trudeau. “We hope that this positive relationship will lead to more Canadian students coming to Korea,” she said, emphasizing the importance of building strong people-to-people connections between the two nations.
─Have you had any memorable experiences or favorite moments in S. Korea?
“I have been in S. Korea for almost two years now. The most memorable moment was last May, during Prime Minister Trudeau’s visit to S. Korea. He made his visit to S. Korea, marking the 60th anniversary of Canada-Korea diplomatic relations. It was a very meaningful moment for both countries.
One of my favorite activities here is hiking. It’s truly special to have such wonderful trails right in the middle of a huge city like Seoul. I hiked to various landmarks such as Seunggasa Temple on Bukhansan. Going to the mountains allows me to see a side of Korea that I wouldn’t experience by just sitting in my office.
Last April, ahead of Prime Minister Trudeau’s visit, former Foreign Minister Park Jin invited the Canadian Foreign Minister, who had come to Korea, to Jinkwansa Temple. We had a special experience, enjoying a temple cuisine lunch and strolling around the temple grounds.”
─ This year marks the 10th anniversary of the Korea-Canada Free Trade Agreement (CKFTA). How would you evaluate the changes in the relationship between the two countries over the years?
“From Canada’s perspective, S. Korea was the first and remains the only country in the Indo-Pacific region with which we have established a bilateral FTA. Through this agreement, nearly 99% of trade between our two countries is now tariff-free, and trade volume has continued to grow under the FTA. Since the CKFTA came into effect in 2015, the trade volume between our countries has increased by 82.5% compared to the pre-FTA period, and Korea’s direct investment in Canada has tripled. We have built a lot on the foundation of the FTA, and the economic relationship between our countries has seen remarkable growth.”
─ Why is South Korea an important trade partner for Canada?
“S. Korea is Canada’s top trade and investment partner, not only in the Indo-Pacific region but globally. This is evident from the fact that S. Korea is the first and only country in the Indo-Pacific with which Canada has signed a bilateral FTA. Also, S. Korean companies are global leaders known for high-quality products and innovation. Canada views S. Korea as a top investment partner because our economies are complementary.”
─The TCTM made a significant visit to S. Korea. What were some of the key outcomes?”
“The TCTM visited S. Korea last April as part of Canada’s Indo-Pacific Strategy. They showcased Canada’s strengths in various sectors, including agriculture and agri-food, clean energy, clean technology, life sciences, and ICT, seeking opportunities for collaboration.
Minister Ng, who led the TCTM, met with Canadian investors in Korea, such as LG Energy Solution, Samsung Electronics, and Krafton, emphasizing Canada’s desire for deeper cooperation with Korean business partners.
Also, the TCTM provided information on the Canadian market, offered networking opportunities with Korean companies, and facilitated business-to-business (B2B) meetings. The Canadian government does not usually send such a large trade delegation.
For instance, TRIUM Environmental, an environmental technology and services company based in Calgary, signed a Memorandum of Understanding (MOU) with BizData, a Korean AI company. We expect more results to follow soon.”
─ What are the major export and import items between South Korea and Canada?
“S. Korea is a major importer of Canadian energy, minerals, agriculture, and agri-food products. Meanwhile, Canada imports automobiles, electronics, and other manufactured goods from S. Korea.
In 2023, the total trade in goods between Canada and South Korea reached $20.9 billion (USD). Canada exported goods worth $7 billion to S. Korea, mainly minerals, meat, wood pulp, electronic machinery, and equipment. During the same period, S. Korea exported automobiles and parts, machinery, electrical and electronic machinery, and steel products to Canada, totaling $13.9 billion.
It’s also important to note the significance of trade in services between the two countries.
In 2023, service trade between Canada and South Korea reached $2.5 billion. A key component of Canada’s service exports is international education.
South Korea is a major source of international students for Canada, which strengthens not only our commercial relations but also our people-to-people ties. As of 2023, 15,930 South Koreans have been granted study permits, making S. Korea the 10th largest source of international students in Canada.”
─ How well-known are Korean products and services in Canada?
“S. Korean electronics, consumer goods, and automobiles are well-received and sell well in Canada. S. Korean products indeed enjoy strong brand recognition.
Many Canadians have become K-culture enthusiasts and are very knowledgeable about Korean movies, TV shows, and music. I myself am planning to attend a K-pop concert very soon.
It is also important to note that Korean food and beverages have also gained popularity across Canada recently. It has become easier to find Korean restaurants and soju, and the popularity of Korean dramas has boosted interest in Korean cuisine.”
─ What areas do you see as opportunities to expand trade between the two nations?
“I believe Canada’s abundant natural resources and S. Korea’s manufacturing and technological expertise can be leveraged to promote sustainable growth. Canada has the natural resources needed to produce electric vehicles (EVs) and batteries.
Additionally, we have a skilled workforce and the land available to operate EV factories. By building new factories in Canada and combining them with South Korean manufacturing know-how, we can support Korean companies and ecosystems.
S. Korean battery-related companies, such as LG Energy Solution and POSCO Future M, have made significant investments in Canada, playing an important role in the development of Canada’s EV ecosystem. In addition, clean energy and small modular reactors (SMRs) are also key areas where our two countries can collaborate.”
─While the Canadian economy is similar in size to South Korea’s, Canada is considered a leader in AI technology, expertise, and competitiveness. What do you see as the potential for cooperation between the two countries in AI?
“The first place President Yoon visited in Canada was the University of Toronto, which exemplifies the complementarity between our two countries.
In fact, Canada has invested heavily in fundamental research. In 2017, Canada launched the Pan-Canadian AI Strategy and established three major AI superclusters in Toronto, Edmonton, and Montreal. Canada’s national AI research institutions play a crucial role in ensuring the success of AI research and development.
As a result, Canadian AI expertise has already been integrated into various industries in South Korea. For example, Cyclica, a drug discovery platform company, has partnered with Yuhan Corporation and SK Chemicals on drug discovery projects.
Also, the Vector Institute in Canada and KT have formed a strategic partnership focused on AI research and development related to speech recognition, interpretation, and generation. Beyond this, there is potential for AI-related cooperation in various fields such as manufacturing, agriculture, and life sciences.”
─ What measures can be taken to promote trade and investment between South Korea and Canada?
“The team responsible for trade and economic affairs at the Canadian Embassy in Seoul supports Canadian exporters in exploring opportunities in the Korean market. They play a key role in connecting Canadian and Korean industries.
They also assist Korean companies interested in investing in Canada. For instance, in the agri-food sector, we collaborated with Homeplus in S. Korea in July and November last year to promote Canadian barley-fed pork. As a result, Canada’s pork exports to S. Korea increased by 3.5% compared to the previous year.”
─ What are Canada’s export and import targets with South Korea?
“Canada does not set specific export and import targets for individual countries. However, in 2018, Canada launched the Trade Diversification Strategy with the goal of increasing exports by 50% by 2025. A key focus of the Trade Diversification Strategy is to strengthen cooperation with partners like South Korea, where trade is based on rules and high standards.
According to a report released by Global Affairs Canada in 2023, Canada’s annual export growth rate to S. Korea was 7.7%, exceeding the diversification target of 5.2%. A recent report by Export Development Canada projects that Canada’s average annual exports to S. Korea will grow rapidly, reaching up to $16 billion by 2050, more than double the current level. The future of trade between Canada and South Korea is bright.”
The Chosun Daily also conducted a written interview with Laurel Broten, CEO of Invest in Canada, an agency dedicated to attracting foreign direct investment (FDI) to Canada and helping global companies enter the Canadian market. Below is the interview with CEO Broten.
─ What is the scale and focus of S. Korea’s FDI in Canada?
“In 2023, S. Korea’s FDI in Canada amounted to $8.8 billion, reflecting an increase of $300 million (3.6%) compared to 2022. As of 2022, S. Korean companies have primarily invested in Canada’s energy and mining sectors, financial services, and information and communication technology.
In recent years, cooperation between Canada and S. Korea has expanded in areas such as critical mineral supply chains, energy, and life sciences. S. Korean companies like LG Energy Solution, POSCO Future M, SK On, and EcoPro BM are key investors in Canada’s electric vehicle battery supply chain.”
─ Are there any industries in Canada where foreign investment is restricted?
“There are restrictions on FDI in certain industries for reasons of national security or to support strategic industries. Canada aims to provide certainty to investors through clear, transparent, and stable policies and regulations. This helps create a predictable investment environment, fostering trust and mutually beneficial relationships between Canada and businesses.”
─ What measures can be taken to promote investment between S. Korea and Canada?
“According to the Canadian government’s Indo-Pacific Strategy, Canada and S. Korea can collaborate in areas such as AI, critical minerals, and electric vehicle battery supply chains. The strategy also includes annual climate change talks, cooperation on building resilient supply chains, supporting the supply of critical minerals, and aiding the transition to clean energy.
On a provincial level, there are also initiatives to promote investment between the two countries. For example, the government officials in Ontario recently visited S. Korea to highlight investment opportunities in the automotive, aerospace, and other key sectors.”
─ Why should South Korea invest in Canada?
“Canada boasts a highly educated workforce and is connected to 1.5 billion consumers in 51 countries through 15 FTAs. Additionally, Canada offers investors political, economic, and financial stability. The country also has a strong, well-established supply chain in the profitable North American market. Beyond this, potential investors can benefit from tax incentives and credits. In the OECD’s ‘FDI Attractiveness’ ranking, Canada placed third, guaranteeing that Canada is one of the best places for sustainable investment.”
