Ontario worried about South Korean trade deal’s impact on autos

The Ontario government is expressing “concern” over Canada’s looming trade deal with South Korea because it could hurt the province’s auto sector.

Economic Development and Trade Minister Eric Hoskins warned that Ottawa must ensure any accord has the same provisions to protect the domestic motor industry that the U.S. enshrined in its deal with Seoul, which took effect in 2012...

Hoskins [Ontario Economic Development and Trade Minister], who has conferred with officials at General Motors, Ford, Chrysler, Honda, and Toyota as well as Unifor union leaders, noted that there are 93,000 Ontario workers directly employed in automotive factories...

That’s why Ontario is hoping the Canada-South Korea accord, which has been in the works since negotiations began in 2005, contains protections similar to those the U.S. auto industry inserted in that country’s trade deal.

To allay fears of South Korean automakers such as Hyundai and Kia flooding the American market, the U.S. pact lowered tariffs for GM, Ford, and Chrysler cars and trucks being exported into South Korea.
At the same time, levies are being kept in place on South Korean vehicles coming stateside until 2016.
Hoskins stressed that Ontario supports more free trade and noted an accord with South Korea would help the food processing and agricultural industries — especially beef and pork producers...

In Ottawa, officials said “a high-quality bilateral free trade agreement” is the goal.

“As we do in all trade talks, including with the recent historic Canada-EU trade agreement, we are consulting with provinces and territories, stakeholders and businesses in key economic sectors covering every region of the country to help inform Canada’s negotiating positions,” said Rudy Husny, press secretary to International Trade Minister Ed Fast...

There is pressure for Ottawa to reach an arrangement with South Korea, which has also inked accords with the European Union and Australia.

Since the U.S. achieved its deal two years ago, Canadian exports there have dropped 30 per cent, or $1.5 billion.

This has been excerpted from the 31 January 2014 article by The Star, and is available in its entirety at http://www.thestar.com/news/queenspark/2014/01/31/ontario_worried_about_south_korean_trade_deals_impact_on_autos.html - subscription may be required.