(MENAFN- QNA) South Korea's Cabinet approved a bill on a free trade agreement (FTA) with Canada ahead of ratification by the parliament, the prime minister's office said.
After nearly nine years of talks, including a five-year hiatus, Seoul and Ottawa concluded the FTA in March this year. The two sides expect the deal to help significantly boost bilateral trade by cutting tariffs on a wide range of products including automobiles and meat, according to South Korea's (Yonhap) News Agency.
During a weekly meeting held in Seoul earlier in the day, the Cabinet gave the go-ahead to the deal, paving the way for the government to seek approval from the National Assembly, according to the office.
Following the parliament's endorsement, President Park Geun-hye plans to formally sign the agreement during her scheduled visit to the North American country next week, it added.
But it is unclear if the deal will pass through the National Assembly before Park's trip to Canada, as the parliament has been deadlocked due to a prolonged partisan spat over a special bill aimed at uncovering the truth about April's ferry sinking that killed more than 300 people.
Under the deal, Canada will reduce its current 6.1% import tariffs on South Korean automobiles and auto parts to about 4% within two years of implementation. South Korea will completely remove its 8% import tariffs on all automobiles and auto parts from Canada as soon as the bilateral trade pact goes into effect.
In 2013, South Korea shipped over 130,000 vehicles worth some US$2.23 billion to Canada, which accounted for the largest share, or 42.8%, of Seoul's total exports to Canada, while importing approximately $92 million worth of vehicles and parts.
South Korea will also gradually remove its tariffs on beef and pork imports from Canada over a span of 15 years, according to the deal.
If implemented, South Korea will be the first Asian nation to clinch an FTA with Canada, with Canada to be South Korea's 12th bilateral FTA partner.
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