South Korea trade deal criticized

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Prime Minister Stephen Harper calls a free trade deal with South Korea a “historic milestone for Canada.” But critics say it undermines our jobs.

Harper says it will remove virtually all tariffs between our countries once it’s been fully phased in. He told a news conference in Seoul that it will create jobs and opportunities for Canadians. He also says it will give Canadian businesses a key gateway to asian markets.

Under the deal, Korea will cut about 82 per cent of duties on Canadian goods, and Canada will remove 76 per cent of levies on Korean products.

The trade agreement has ignited a firestorm in the auto industry.

Ontario trade minister Eric Hoskins applauds parts of the deal but says he’s very concerned about how it will affect the auto sector, saying “the province and the auto sector have repeatedly expressed that without sufficient safeguards, this agreement creates an unequal playing field between South Korean and Canadian car manufacturers.”

Unifor, the union representing Canadian Auto Workers echoes that concern, saying “we cannot stand by a deal that secures a one-way flow of Korean auto imports into the Canadian market, undermining the jobs and industry on which so many Canadians depend, while precious little is done to strengthen our imports to Korea.”

Critics say the deal should have included a provision that would allow the Canadian government to back track on auto tariffs if the agreement creates trade imbalances.

Dianne Craig, president and CEO of Ford Canada believes South Korea will remain one of the most closed automotive markets in the world. She says both the American and European free trade agreements with South Korea haven’t reversed the one-sided automotive trade flow.

Prime minister Harper called Craig out on her comments, saying “I don’t think it’s realistic for a company to think it will have one set of rules for it, and another set of rules for the entire rest of the Canadian economy.”