The governments of South Korea and Canada signed a broad free trade deal on Monday (Canadian time) that will gradually lift almost all tariffs on agreed products to be traded between both nations over the next 10 years.

South Korea’s Commerce Minister Yoon Sang-jick signed the deal with his Canadian counterpart in Ottawa, following a summit between the leaders of the two countries. The signing ceremony was attended by South Korean President Park Geun-hye and her counterpart Canadian Premier Stephen Harper, after the two discussed an array of bilateral and global issues including security and economic cooperation.

Park was on a state visit to Canada, as part of a weeklong overseas trip. After her Canada visit, she is scheduled to attend the U.N. Climate Summit and General Assembly. She returns on Friday.

President Park said the free trade deal sealed with Canada will maximize cooperation between the two countries.

“The free trade deal will provide a new impetus to maximize the potential power of bilateral cooperation,” Park said during an official welcoming ceremony held at the residence of Canada’s Governor General David Johnston.

The Korea-Canada FTA signing ceremony was held after nine years of negotiations, and six months after the two sides concluded the deal in March. The free trade deal is the ninth for South Korea ― the first Asian nation to sign an FTA with Canada.

The free trade deal allows the two countries to lift almost all tariffs on agreed-upon items over the next 10 years. South Korea expects to enjoy benefits for its automobile sector under the agreement.

Canada is required to eliminate its current 6.1 percent import tariffs on South Korean cars within three years of the deal’s effectuation. The agreement could allow South Korean carmakers to enjoy benefits like those granted to American and Japanese competitors, which manufacture automobiles in Canada.

In 2013, South Korea exported over 130,000 vehicles worth some $2.23 billion to Canada. The shipments of automobiles to Canada accounted for 42.8 percent of Seoul’s total exports to the North American country. Two-way trade amounted to nearly $10 billion last year, officials said. But the deal is expected to have negative ramifications for South Korean agriculture, causing 32 billion won ($30.7 million) worth of losses per year. To support Korean farmers, the government will come up with 2.1 trillion won worth of countermeasures, Cheong Wa Dae said.

The South Korean government said it will request for the National Assembly to approve the deal with Canada early next month.

After completing her three-day state visit, the South Korean president left for New York later in the evening. She is scheduled to attend the U.N. Climate Summit on Tuesday and to give an opening speech at the U.N. General Assembly the next day. Park is likely to call for international support to bring peace to the divided Korean Peninsula and the Asia-Pacific region. It remains unclear whether Park will meet with her Japanese counterpart Prime Minister Shinzo Abe on the sidelines of the U.N. meeting. Korea and Japan have remained at odds on account of territorial and historical feuds.

By Cho Chung-un and news reports
(christory@heraldcorp.com)