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Trade Agreement between Canada and the Republic of Korea [1966] CATSer 13 (20 December 1966)

E100527 - CTS 1966 No. 26

TRADE AGREEMENT BETWEEN CANADA AND THE REPUBLIC OF KOREA

The Government of Canada and the Government of the Republic of Korea, desiring to strengthen and develop trade relations between the two countries, have agreed as follows:

ARTICLE I

1. Each Contracting Party shall accord to the other Contracting Party unconditional most-favoured-nation treatment in all matters respecting: customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports; the method of levying such duties and charges; the rules and formalities connected with importation or exportation; all internal taxes or other internal charges of any kind; all laws, regulations and requirements affecting internal sale, offering for sale, purchase, distribution or use of imported goods within its territory.

2. Any advantage, favour, privilege or immunity which has been or may hereafter be granted by either Contracting Party in regard to the matters referred to in paragraph 1 of this Article to any product originating in any third country or consigned to the territory of any third country shall be accorded immediately and without compensation to the like product originating in or consigned to the territory of the other Contracting Party, respectively, and irrespective of the nationality of the carrier.

3. The provisions of this Article relating to most-favoured-nation treatment are not applicable to exclusive advantages accorded by Canada to countries and their dependent overseas territories entitled to the benefits of the British Preferential Tariff.

ARTICLE II

Each Contracting Party shall accord to the products of the other Contracting Party, which have been in transit through the territory of any third country receiving most-favoured-nation treatment from the importing country, treatment no less favourable than that which would have been accorded to such products had they been transported from their place of origin to their destination without going through the territory of such third country. Each Contracting Party shall, however, be free to maintain its requirements of direct consignment existing on the date of signature of the present Agreement in respect of any goods in regard to which such direct consignment has relation to that Contracting Party's prescribed method of valuation for duty purposes.

ARTICLE III

In all matters relating to the importation or exportation of any product from or to the territory of the other Contracting Party, to the allocation of foreign exchange, and to the administration of foreign exchange restrictions affecting transactions involving the importation and exportation of any product, each Contracting Party undertakes not to apply any prohibitions or restrictions which are not similarly applied to the importation or exportation of the like product from or to the territories of all third countries.

ARTICLE IV

1. The provisions of the present Agreement shall not limit the right of either Contracting Party to apply prohibitions or restrictions of any kind directed to the protection of its essential security interests or to the implementation of its obligations under any multilateral commodity agreement concluded under the auspices of the United Nations which is open to participation by both governments.

2. The provisions of the present Agreement shall not limit the right of Korea to accord tariff preferences or other advantages in respect of imports under the military and economic grant aid programmes of any foreign government, corporation or association or of the United Nations and the specialised agencies brought into relationship with the United Nations in accordance with the provisions of the Charter of the United Nations.

ARTICLE V

Each Contracting Party undertakes that if it establishes or maintains a state enterprise wherever located, or grants to any enterprise, formally or in effect, exclusive or special privileges, such enterprise shall, in its purchases or sales involving either imports or exports, act in a manner consistent with the principles of non-discriminatory treatment provided for in the present Agreement. To this end, subject to the provisions of Article IV, such enterprises shall make any purchases or sales solely in accordance with commercial considerations including price, quality, availability, marketability and other conditions of purchase or sale, and shall afford to the enterprises of the other Contracting Party adequate opportunity in accordance with customary business practice to compete for participation in such purchases or sales.

The provisions of the first paragraph of this Article shall not apply to imports of products for immediate or ultimate consumption in governmental use and not otherwise for resale or use in the production of goods for sale. With respect to such imports, each Contracting Party shall accord to the trade of the other Contracting Party fair and equitable treatment.

ARTICLE VI

Each Contracting Party undertakes to conform in its trade and commerce to internationally accepted fair practices, particularly in matters relating to trade marks, marks of origin and rights under patents, and to co-operate with the other Contracting Party with a view to preventing any practices which might prejudicially affect the commerce between the two countries.

ARTICLE VII

The Government of either Contracting Party shall give sympathetic consideration to any representations which the Government of the other Contracting Party may take in respect of the implementation of the present Agreement and shall afford adequate opportunity for consultation regarding such representations.

ARTICLE VIII

1. This Agreement shall come into force on the date of signature and shall remain valid for a period of three years from such date. Thereafter it shall remain in effect until:

(a) the two Governments otherwise agree, or

(b) one Government gives to the other notice in writing of its desire to terminate the Agreement, in which event the Agreement shall be terminated ninety days after the date on which the notice is given.

2. Any revision or termination of this Agreement shall be without prejudice to any right or obligation accruing or incurred under the Agreement prior to the effective date of such revision or termination.

IN WITNESS WHEREOF the representatives of the two Governments, duly authorized for the purpose, have signed the present Agreement.

DONE at Ottawa, this twentieth day of December, 1966, in two copies, each in the English, French and Korean languages, all versions of which are equally authentic.

Paul Martin
Robert Winters

FOR THE GOVERNMENT OF CANADA

Tong Won Lee
Sun Yup Paik

FOR THE GOVERNMENT OF KOREA

II

AGREED OFFICIAL MINUTE

With reference to Article IV of the Trade Agreement it is understood and agreed by the Contracting Parties that the measures that may be undertaken for the protection of essential security interests relate to such measures as, for example, might be undertaken, for purposes of public security or national defence or maintenance of international peace; for traffic in arms, ammunition and implements of war; and for trade in nuclear materials and equipment as defined in the Safeguards Document (1965) of the International Atomic Energy Agency.

Paul Martin
Robert Winters

FOR THE GOVERNMENT OF CANADA

Tong Won Lee
Sun Yup Paik

FOR THE GOVERNMENT OF KOREA

III

The Minister of Foreign Affairs of the Republic of Korea to the Secretary of State for External Affairs

EMBASSY OF THE REPUBLIC OF KOREA

(Translation)

OTTAWA, December 20, 1966

His Excellency Paul Martin,
Secretary of State for External Affairs,
Ottawa

Excellency,

On the occasion of the signing of the Trade Agreement between the Republic of Korea and Canada, I have the honour to inform Your Excellency that with respect to exports of certain products from Korea which may cause or threaten to cause serious injury to domestic producers in Canada, the Government of the Republic of Korea undertakes to consult at the request of the Government of Canada with a view to applying effective restraints on the exports of such products, at levels agreed by both Governments.

I avail myself, Excellency, of this opportunity to renew the assurances of my highest consideration.

Tong Won Lee,

Minister of Foreign Affairs

IV

The Secretary of State for External Affairs to the Minister of Foreign Affairs of the Republic of Korea

SECRETARY OF STATE FOR EXTERNAL AFFAIRS

OTTAWA, December 20, 1966

His Excellency, Tong Won Lee,
Minister of Foreign Affairs
of the Republic of Korea

Excellency,

I have the honour to refer to your letter of today's date, which reads as follows:

"On the occasion of the signing of the Trade Agreement between the Republic of Korea and Canada, I have the honour to inform Your Excellency that with respect to exports of certain products from Korea which may cause or threaten to cause serious injury to domestic producers in Canada, the Government of the Republic of Korea undertakes to consult at the request of the Government of Canada with a view to applying effective restraints on the exports of such products, at levels agreed by both Governments."

On behalf of the Government of Canada I acknowledge with thanks the undertakings of the Government of the Republic of Korea set out in your letter.

I avail myself, Excellency, of this opportunity to renew to you the assurances of my highest consideration.

Paul Martin,

Secretary of State for External Affairs

V

The Secretary of State for External Affairs to the Minister of Foreign Affairs of the Republic of Korea

SECRETARY OF STATE FOR EXTERNAL AFFAIRS

OTTAWA, December 20, 1966

His Excellency Tong Won Lee,
Minister of Foreign Affairs
of the Republic of Korea

Excellency,

On the occasion of signing the Trade Agreement between Canada and the Republic of Korea, I have the honour to inform Your Excellency that the Government of Canada reserves the right to establish values for ordinary and special duty purposes in the following terms:

1. If, as a result of unforeseen developments and of the effect of the obligations incurred by Canada under the aforesaid Agreement, any product is being imported into its territory in such increased quantities and under such conditions as to cause or threaten serious injury to the domestic producers in its territory of like or directly competitive products, it is understood that Canada will be free, in respect of such product, and to the extent and for such a time as may be necessary to prevent or remedy such injury, to establish values for ordinary and special duty purposes.

2. In determining whether values should be established in respect of any product pursuant to paragraph 1 and in determining the level at which such values should be established, Canada will take into account the prices of like or directly competitive products, if any, being imported at that time from other countries.

3. Before Canada takes action pursuant to paragraph 1, it will give notice in writing to the Republic of Korea as far in advance as may be practicable and will afford the latter an opportunity to consult with it in respect of the proposed action. In critical circumstances, where delay would cause damage which it would be difficult to repair, action under paragraph 1 may be taken provisionally without prior consultation, on the condition that consultation shall take place immediately after taking such action.

It is further understood that these provisions would be without prejudice to Canada's right to take such alternative measures, in the circumstances envisaged, as may also be consistent with the General Agreement on Tariffs and Trade. It is also understood that these provisions would continue to be applicable in the event that the General Agreement on Tariffs and Trade is applied between Canada and the Republic of Korea.

I avail myself, Excellency, of this opportunity to renew assurances of my highest consideration.

Paul Martin,

Secretary of State for External Affairs

VI

The Minister of Foreign Affairs of the Republic of Korea to the Secretary of State for External Affairs

EMBASSY OF THE REPUBLIC OF KOREA

(Translation)

OTTAWA, December 20, 1966

His Excellency Paul Martin,
Secretary of State for External Affairs,
Ottawa

Excellency,

I have the honour to refer to your letter of today's date, which reads as follows:

"On the occasion of signing the Trade Agreement between Canada and the Republic of Korea, I have the honour to inform Your Excellency that the Government of Canada reserves the right to establish values for ordinary and special duty purposes in the following terms:

1. If, as a result of unforeseen developments and of the effect of the obligations incurred by Canada under the aforesaid Agreement, any product is being imported into its territory in such increased quantities and under such conditions as to cause or threaten serious injury to the domestic producers in its territory of like or directly competitive products, it is understood that Canada will be free, in respect of such product, and to the extent and for such a time as may be necessary to prevent or remedy such injury, to establish values for ordinary and special duty purposes.

2. In determining whether values should be established in respect of any product pursuant to paragraph 1 and in determining the level at which such values should be established, Canada will take into account the prices of like or directly competitive products, if any, being imported at that time from other countries.

3. Before Canada takes action pursuant to paragraph 1, it will give notice in writing to the Republic of Korea as far in advance as may be practicable and will afford the latter an opportunity to consult with it in respect of the proposed action. In critical circumstances, where delay would cause damage which it would be difficult to repair, action under paragraph 1 may be taken provisionally without prior consultation, on the condition that consultation shall take place immediately after taking such action.

"It is further understood that these provisions would be without prejudice to Canada's right to take such alternative measures, in the circumstances envisaged, as may also be consistent with the General Agreement on Tariffs and Trade. It is also understood that these provisions would continue to be applicable in the event that the General Agreement on Tariffs and Trade is applied between Canada and the Republic of Korea."

I have the honour to confirm that the understandings in your letter set out above are concurred in by my Government.

I avail myself, Excellency, of this opportunity to renew to you the assurances of my highest consideration.

Tong Won Lee,

Minister of Foreign Affairs

VII

The Minister of Trade and Commerce to the Ambassador of the Republic of Korea

MINISTER OF TRADE AND COMMERCE

OTTAWA, December 20, 1966

His Excellency Sun Yup Paik,
Ambassador of the Republic of Korea

Excellency,

With reference to the Trade Agreement between Canada and the Republic of Korea which has been signed today, it is the understanding of the Government of Canada that the Government of the Republic of Korea would wish to provide opportunities for Canadian products to compete on a commercial basis in the Korean market. In this connection, I have the honour to draw to your Excellency's attention the following goods which are of immediate export interest to Canada: wheat, barley, wheat flour, malt, breeding stock, softwood lumber, wood pulp, newsprint paper, asbestos, synthetic rubber, primary aluminum, nickel, lead and zinc.

With respect to the above products, it is my understanding that imports into the Republic of Korea of asbestos, certain softwood lumber, ground pulp, primary aluminum, nickel and lead are under the system of automatic approval whereby imports are free of restriction and the necessary foreign exchange is freely granted. It is understood that it is the intention of the Government of the Republic of Korea except when justified on balance-of-payments grounds to maintain unrestricted access for these items within the framework of its policy of gradually liberalizing trade. It is further understood that the Government of the Republic of Korea will endeavour to include at the earliest opportunity newsprint paper, chemical wood pulp, synthetic rubber and zinc under this group of products which are not subject to restrictions and that licences will be made available for import of malt and of cattle for breeding in accordance with the pertinent trade plan in force.

With respect to wheat and barley, it is understood that it is the intention of the Government of the Republic of Korea, as it becomes able to finance import of these products with its own foreign exchange, to develop a commercial market for imports in which Canada will be able to compete on a fully non-discriminatory basis.

Both Governments agree to consult further with respect to these and other products which are or may become of interest to Canada with a view to providing a fair and reasonable access for Canadian goods.

I avail myself, Excellency, of this opportunity to renew assurances of my highest consideration.

Robert Winters,

Minister of Trade and Commerce

VIII

The Ambassador of the Republic of Korea to the Minister of Trade and Commerce

EMBASSY OF THE REPUBLIC OF KOREA

(Translation)

OTTAWA, December 20, 1966

His Excellency Robert H. Winters,
Minister of Trade and Commerce,
Ottawa

Excellency,

I have the honour to refer to your letter of today's date, which reads as follows:

"With reference to the Trade Agreement between Canada and the Republic of Korea which has been signed today, it is the understanding of the Government of Canada that the Government of the Republic of Korea would wish to provide opportunities for Canadian products to compete on a commercial basis in the Korean market. In this connection, I have the honour to draw to your Excellency's attention the following goods which are of immediate export interest to Canada: wheat, barley, wheat flour, malt, breeding stock, softwood lumber, wood pulp, newsprint paper, asbestos, synthetic rubber, primary aluminum, nickel, lead and zinc.

"With respect to the above products, it is my understanding that imports into the Republic of Korea of asbestos, certain softwood lumber, ground pulp, primary aluminum, nickel and lead are under the system of automatic approval whereby imports are free of restriction and the necessary foreign exchange is freely granted. It is understood that it is the intention of the Government of the Republic of Korea except when justified on balance-of-payments grounds to maintain unrestricted access for these items within the framework of its policy of gradually liberalizing trade. It is further understood that the Government of the Republic of Korea will endeavour to include at the earliest opportunity newsprint paper, chemical wood pulp, synthetic rubber and zinc under this group of products which are not subject to restrictions and that licences will be made available for import of malt and of cattle for breeding in accordance with the pertinent trade plan in force.

"With respect to wheat and barley, it is understood that it is the intention of the Government of the Republic of Korea, as it becomes able to finance import of these products with its own foreign exchange, to develop a commercial market for imports in which Canada will be able to compete on a fully non-discriminatory basis.

"Both Governments agree to consult further with respect to these and other products which are or may become of interest to Canada with a view to providing a fair and reasonable access for Canadian goods."

On behalf of the Government of the Republic of Korea I have the honour to confirm the understandings set out in your letter.

I avail myself, Excellency, of this opportunity to renew to you the assurances of my highest consideration.

Sun Yup Paik,

Ambassador of the Republic of Korea