Sunday, July 27th18.9°C
22716
22455

Ontario worried about impact of South Korean free trade deal on auto sector

TORONTO - Ontario is worried about "the potential for serious negative impacts" from Canada's new free trade deal with South Korea on the province's automakers, Economic Development and Trade Minister Eric Hoskins said Tuesday.

Two years isn't enough time for domestic automakers to adjust to the removal of Canada's 6.1 per cent tariff on imports of Korean cars, Hoskins said in reaction to the deal announced in Seoul by Prime Minister Stephen Harper.

"Our government remains very concerned regarding the potential for serious negative impacts this agreement could have on Ontario's auto sector," he said.

"The province and the auto sector have repeatedly expressed that without sufficient safeguards, this agreements creates an unequal playing field between South Korean and Canadian car manufacturers."

Ontario told the federal government during the free trade negotiations that it needed the longest-possible phase-out period for the tariff, up to seven years if possible. The U.S. negotiated a five-year tariff phase-out period in its trade deal with South Korea.

Hoskins complained that Canada's deal also doesn't include a provision that would have allowed Ottawa to re-impose tariffs if South Korea imposes non-tariff barriers to restrict sales of Canadian cars in their market.

"I am also disappointed that the federal government, despite our repeated requests, was unable to secure the same snap-back provisions that the U.S. negotiated through its deal with South Korea," said Hoskins.

He called for a task force consisting of the federal and Ontario governments and Canadian automakers that would report monthly on the level of Kia and Hyundai vehicles imported from Korea.

"To protect the hundreds of thousands of families that directly and indirectly depend on auto sector jobs for their livelihoods, the province is calling for the establishment of a task force to monitor the implementation of this agreement," said Hoskins.

Hoskins did acknowledge that the new trade pact would benefit other sectors of Ontario's economy, saying it contains "positive measures that will open new markets to a variety of industries, particularly the agriculture and food processing sectors."

Ontario's Progressive Conservatives welcomed the free trade deal with South Korea negotiated by their federal cousins.

"Anything that assists in growing jobs and the flow of goods is a good thing," said PC critic Lisa Thompson. "I have every confidence in our federal government that we are going to benefit from this."

While the New Democrats said the Korean free trade deal would open up new markets for Ontario ice wines and pork, they warned it was "a blow" to the province's auto sector.

"It is starting to seem like Ottawa and Ontario are prepared to kill off good auto jobs in this province," said NDP economic development critic Catherine Fife. "Our auto sector has been sold out by Ottawa for a trade deal with South Korea."

Meanwhile, Ford Canada said South Korea will remain "one of the most closed automotive markets in the world," and noted free trade deals with the U.S. and European Union "failed to reverse this one-sided automotive trade flow."

"No Canadian manufacturer can compete with a market controlled by non-tariff barriers and currency manipulation," said Ford president and CEO Dianne Craig.

Follow @CPnewsboy on Twitter

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15455.04+60.59
S&P CDNX1017.445.79
DJIA16960.57-123.23
Nasdaq4449.564-22.543
S&P 5001978.34-9.64
CDN Dollar0.9255+0.0009
Gold1308.00+4.90
Oil104.30-0.29
Lumber325.50+0.20
Natural Gas3.767-0.014

 
Okanagan Companies
Pacific Safety0.185-0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07-0.01
Anavex Life Sciences0.275-0.005
Metalex Ventures0.08+0.01
Russel Metals35.36-0.21
Copper Mountain Mining2.820.00
Colorado Resources0.21+0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.19+0.01

 



22557

FEATURED Property
2013336#308, 1055 Glenwood Ave
2 bedrooms 2 baths
$129,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...

_








Member of BC Press Council


22758