OTTAWA, ONTARIO -- (Marketwired) -- 12/03/14 -- The Malting Industry Association of Canada (MIAC) is delighted that the Canada-Korea Economic Growth and Prosperity Act has received royal ascent by both governments, as announced today by International Trade Minister Ed Fast. This announcement coincides with the passage of the Canada-Korea Free Trade Agreement (CKFTA) ratification bill in the South Korean National Assembly yesterday.
The CKFTA eliminates tariffs on 13,000 tonnes of malt beginning January 1, 2015 with tariff free access reaching 25,000 tonnes by year 11 and complete tariff free access in year 12. Korea is Canada's 2nd largest offshore malt export market with annual sales today of approximately 30,000 tonnes.
The agreement is particularly good news since Korea is highly regarded as an important malt customer for Canadian malt companies. "This agreement will now provide Canadian maltsters not only competitive export stability in this market, but opens the door for what we believe will be increased sales moving forward," says MIAC president Phil de Kemp.
"Eliminating tariffs and liberalizing trade globally for malt is critically important for our industry, so any agreement that continues to move forward the Government of Canada's trade agenda globally is great news," says de Kemp.
This agreement will provide additional domestic sales opportunities for malting barley producers due to the anticipated increased market opportunities for value-added malt during the course of the implementation period and certainly beyond. "This is a win-win situation for our industry and our barley farmers," says de Kemp. "It will provide the ability for us to continue to work closely with our barley producers to maximize their market sales of malting barley for malt production."
The CKFTA is a tremendous accomplishment for the Government of Canada and the exemplary work of our negotiators is greatly appreciated. We look forward to their continued support in securing future trade deals with Japan and the Trans Pacific Partnership countries, which will provide increased economic benefits to all our partners in the barley industry.
Canada is the third largest exporter of malt in the world. MIAC's four members purchase approximately one million tonnes of malting barley annually. Malt exports account for over 65% of our production and is shipped to our brewing customers in over 20 countries around the globe.
Contacts:
Media may contact:
Phil de Kemp, President
Malting Industry Association of Canada
613-271-9774
phildekemp@rogers.com
