April 25, 2024

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[THE INVESTOR] South Korea's shipments of cosmetic goods to Canada jumped nearly 60 percent in 2015 from four years earlier, data showed on Nov. 27, with the figure set rise further as the free trade agreement between the two countries is to eliminate tariffs on the products next year.

According to the data compiled by the Korea Trade-Investment Promotion Agency (KOTRA), Canada's imports of South Korean cosmetic goods reached US$25.6 million, up 57.9 percent from 2011. 

South Korea was also ranked as the seventh-largest shipper of cosmetic goods to the North American country.

Skin-care products, including lotion and facial masks, took up 92 percent of South Korea's exports to Canada in the segment, the data also showed.

Industry watchers said the number is expected to grow further starting next year, as the tariff on such products will be abolished, marking the third year of the free trade deal between South Korea and Canada.

"Once the tariff is eliminated, South Korean cosmetic goods will gain price competitiveness, which will lead to the trade volume," KOTRA said.

The Canadian government, however, is expected to apply a stricter law to cosmetic goods, KOTRA said, adding South Korean firms must make sure their products are safe.

"South Korean firms must check the list of banned ingredients updated by the Canadian health authority to avoid potential trouble," KOTRA added.
(theinvestor@heraldcorp.com)