Prime Minister Announces New Agreements and Initiatives with Korea

"I am very pleased that President Kim is here to mark with me the latest steps in our countries' Special Partnership," said the Prime Minister. "The agreements that are being signed and the initiatives that we are undertaking, demonstrate the wide range of mutual interests that we have developed over the years. I am confident that as the Korean economy continues its remarkable recovery from the Asian financial crisis, we will be able to develop even more areas of cooperation."

The Prime Minister expressed Canada's strong support for Korea's "Engagement Policy" with North Korea and noted that constructive engagement offers the best prospects for drawing North Korea out of isolation. He added that Korea's pursuit of peace and security on the Korean peninsula is in the interest of the international community.

The following documents were signed in the presence of the Prime Minister and President Kim:

An Agreement on the Procurement of Telecommunications Equipment was signed by Canadian Minister for International Trade Sergio Marchi and Korean Minister of Foreign Affairs and Trade, Hong Soon-young. The Agreement provides access for Canadian companies to telecommunications equipment procurement by Korea Telecom and access for Korean companies to telecommunications equipment procurement by the Government of Canada.

An Agreement on the Exchange and Protection of Classified Military Information was signed by Canada's Minister of Foreign Affairs, Lloyd Axworthy, and Minister Hong. The Agreement expands defence cooperation by providing a mechanism for the exchange and protection of classified military information between the defence departments of the two governments.

In addition, the Prime Minister highlighted the following Canada-Korea initiatives:

The conclusion of a Cooperation Agreement between the Korea National Centre for Cleaner Production and the National Research Council of Canada to facilitate joint basic and applied research in the field of pollution prevention over a five-year period.

The signature of a Memorandum of Understanding (MOU) between the Ottawa Economic Development Corporation (OED) and the Korea Institute of Multimedia Contents and Software (KOMS) on training and employment programs in Ottawa for Koreans in the fields of multimedia content and information technology software. Partners include Algonquin College of Applied Arts and Technology and the Ottawa Centre for Research and Innovation.

The signature of an MOU between the OED and KOMS to develop strategic alliances and to create a software incubator in Ottawa to be used by Canadian and Korean companies.

The formation of a Joint Working Group on Greenhouse Gas Reduction to explore opportunities for Canada and Korea to collaborate on projects aimed at reducing greenhouse gas emissions and promoting sustainable development, especially in the areas of energy efficiency and renewable energy.

The enhancement of the Canada-Korea Work-Holiday Program through the inclusion of instructors of English as a Second Language as a new category under which Canadians can enter Korea.

An agreement to explore the feasibility of an enhanced Regulatory Dialogue and mutual recognition options.

The Prime Minister also noted the signing of the following commercial contracts during President Kim's visit:

Canadian Marconi and Dae Young Electronics have agreed to the technical transfer, licensing and production of military radios for Korea.

SNC Lavalin and DongAh Construction have signed a Memorandum of Understanding confirming their interest in pursuing projects in Korea which could include a land reclamation and development project in Saemankeum in the Province of North Cholla.

PMO Press Office: (613) 957-5555

The Agreement provides reciprocal access by companies in both countries to their telecommunications markets. For Canada, this will mean enhanced access to Korean Telecom's telecommunications equipment procurement; in turn, Korean firms will obtain access to the non-national security telecommunications market of the Government of Canada.

Provisions in the Agreement set out the entities covered by its terms; rules of origin; termination and non-intervention, as well as bid challenge, consultation and arbitration procedures.

This Agreement is a practical step to expand defense cooperation between Canada and Korea. It sets out the procedures for the exchange of classified military information and provides assurance that such information will be properly protected.

With this Agreement in place, a greater range of defense cooperation activities becomes possible, including: more substantive joint military exercises; enhanced cooperation involving defense equipment and richer educational opportunities for military personnel participating in exchange programs.

This Agreement is a mechanism for scientific and technical research cooperation and collaboration. It provides a framework for the exchange of scientific and technical knowledge and the augmentation of the scientific and technical capabilities of the NCCP and the National Research Council's Institute for Chemical Process and Environmental Technology (ICPET).

Activities outlined in the Agreement include the exchange of information, data and visits; research cooperation and technology transfer. It excludes research cooperation that will generate intellectual property. ICPET and NCCP also agree to actively seek support from public and private sources to accelerate the growth of collaborative research programs.

The first MOU is for a training and employment program with Algonquin College of Applied Arts and Technology and the Ottawa Centre for Research and Innovation. This agreement is expected to result in customized training programs in Ottawa for Koreans, initially to prepare them for entry into diploma programs or fast-track courses in the fields of multimedia content and information technology software. The goal of the agreement is to develop and facilitate skilled human resources for Korea's regional information and technology industries.

The second MOU involves a partnership with the National Research Council to establish a software incubator program in the Ottawa area. The incubator program, which will co-locate KOMS and Canadian firms to develop common technology, will be driven by joint development of products, technologies and marketing strategies. For Korean information technology companies, this would mean entry into the Ottawa regional market and the USA; Canadian information technology companies would access a new gateway to markets in Korea and Asia.

The formation of a Joint Working Group will be a concrete step to further the January 1997 "Statement of Intent on Climate Change Activities Implemented Jointly" that was signed between Canada and Korea with the goal of promoting cooperation in joint projects, trade and technology exchanges, and research and information exchange.

The Working Group will focus on identifying joint projects under the Clean Development Mechanism (CDM) under the Kyoto Protocol to the United Nations Framework Convention on Climate Change. The CDM would allow Canadian private and public sector organizations to invest in projects that reduce greenhouse gas emissions in Korea. These organizations would then be eligible to obtain credits for their emissions reduction projects, which could then be applied towards Canada's Kyoto commitments.

Canada strongly supports the reduction of technical barriers in trade. Canada and Korea will initiate regulatory cooperation which will include the examination of each other's regulatory systems. If the results of the regulatory dialogue are deemed to be mutually beneficial, it could lead to an agreement to initiate discussions on a bilateral Mutual Recognition Agreement in specific areas.

The Canada-Korea Work Holiday Program has been in operation since 1995. To date, however, fewer Canadians have taken advantage of it due to the types of eligible employment. The Korean government has now decided to include the participation of instructors of English as a Second Language; this change is expected to result in an increase in the number of Canadians participating in the Program.