Canada's PM Harper speaks during Question Period in the House of Commons on Parliament Hill in Ottawa
Canada's Prime Minister Stephen Harper speaks during Question Period in the House of Commons on Parliament Hill in Ottawa June 18, 2014. REUTERS/Chris Wattie

Canada and South Korea signed a Free Trade Agreement on Monday. Prime Minister Stephen Harper and visiting South Korean President Park Geun-hye signed the bilateral FTA and described it as a strategic partnership agreement reported Cbc.Ca.

Prime Minister Harper described South Korea as Canada's best possible partner in pursuing more such deals in Asia and termed Park's state visit as "historic."

Boost for Canadian Exports

The free trade deal was clinched after decade long parleys. It is expected the deal would zoom Canadian exports to South Korea by 32 per cent and make the economy grow by $1.7 billion. The Korea trade deal is Canada's first ever trade deal in the Asia Pacific region and a stepping stone to Canada's over arching trade ambitions in the region.

This is the second major deal Canada is endorsing in Asia. The South Korean trade pact and Investment protection agreement (FIPA) with China are two major milestones in the Canadian government's pursuit for boosting business ties with leading Asian economies. Both Park and Harper expressed the confidence that they will be able to build more on the current agreement.

Park noted the scope for cooperation in energy and other sectors. The Korean President saw a definite synergy in Canada's expertise in exploration and extraction of gas and crude oil. South Korea is ahead in smart grid and clean energy technology. So, these strengths can be leveraged ideally for better technological co-operation, the Korean president noted.

Agri Sector Hails FTA

The FTA has been welcomed by Canada's agricultural industry and noted the deal will put Canadian farmers at par with other markets. Canada exports 60 per cent of its pork to other countries, reported Toronto Sun. South Korea is a top importer of Canadian beef. Pork Council spokesperson Gary Stordy said the deal has put Canada on an even keel with many of the competitors. Noting that the U.S., E.U. and Australia are already having trade agreements with South Korea, Canada was at a disadvantage so far. The deal has corrected that imbalance. The existing trade between Canada and South Korea is about $10 billion per annum.