S. Korea, Canada agree to resume free trade talks

South Korean President Lee Myung-bak and Canadian Prime Minister Stephen Harper agreed Monday to resume stalled free trade talks between the two countries this year.

The two leaders reached the agreement during a meeting on the sidelines of a summit of the Group of 20 major economies in Mexico's resort city of Los Cabos, sharing a need to further boost trade and investment between the two countries.

South Korea and Canada launched free trade talks in 2005, but the negotiations have stalled since the 13th round in 2008 over Seoul's ban on Canadian beef imports. The ban was lifted early this year.

Lee and Harper also agreed to bolster resources and energy cooperation, including shale gas.

Shale gas refers to natural gas, mainly methane, that is produced from shale formations. It has become an increasingly important source of natural gas in the United States as advancement in drilling technologies has made it possible to access large volumes of shale gas that were previously uneconomical to produce.

They also agreed that North Korea should carry out its international obligations, such as halting its nuclear and missile programs, and should focus on improving the livelihoods of its people. They pledged to continue to cooperate closely on North Korea issues.

The two countries forged diplomatic relations in 1963 and next year marks the 50th anniversary. Bilateral trade volume amounted to

$11.5 billion last year. Monday's summit was the fifth between Lee and Harper. (Yonhap News)