 |
 |
Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics - David Emerson
Guest column published in The Record (Kitchener-Waterloo area, Ontario)
May 26, 2006 |
"Canada comes first in trade negotiations with Korea"
I am writing in response to several mistaken assumptions raised
by the Canadian Auto Workers Union in an article in The Record on May 24 relating to free trade negotiations between Canada
and Korea. The
comments contained in this article are misleading, in that they ignore the benefits
that a free trade agreement (FTA) with Korea
would bring to Canada.
They also suggest that by rushing into these negotiations, Canada's
auto industry will suffer as a result.
This is simply wrong. First of all, Canada's
new government engages in free trade negotiations in order to enhance our
nation's economic prosperity and does not do so without assessing the situation
beforehand. And at the end of the day, I can assure you that we will only commit
to an agreement that is good for Canada
and delivers substantial benefits for the Canadian economy.
This case is no exception. We are negotiating an FTA with Korea
because there are compelling commercial reasons to do so. Through the
elimination of Korean tariffs, non-tariff barriers and restrictions to services
exports and investment, we anticipate that this would create substantial new
opportunities for Canadian business - from agriculture and electronics to high-tech
and financial services. Moreover, this is not just about Korea,
but about engaging emerging markets and establishing a foothold in the dynamic
East Asian region.
The assertion that we are rushing to complete an FTA with Korea
is equally untrue. Far from rushing into an agreement, federal officials have
been working steadily on these negotiations for nearly a year. I might add that
this was preceded by an exploratory phase that began in November 2004 and
involved extensive consultations with a range of Canadian sectors, which
revealed significant and broad-based support for an FTA from across the
country.
While we certainly recognize the significant potential
benefits of free trade with Korea,
we also recognize the significant work to be done; work that will take time to
complete.
With the negotiations now well under way, our government
continues to hold discussions with several Canadian sectors-including the auto
sector-to ensure that their views are reflected throughout our negotiations
with Korea.
A dedicated automotive consultation working group has been
established and meets regularly, to ensure that industry concerns are
well-understood, and that the possible transition to free trade with Korea
is a smooth one for the auto sector. These concerns have played an important
role in shaping Canada's
negotiating position from the very start.
For instance, Canada's
auto sector is concerned about barriers to the Korean market, which is why the
government has made addressing non-tariff measures a key priority in our
negotiating position. In fact, this was the driving force behind the creation
of a separate automotive working group within the negotiating structure.
Moreover, our analysis suggests that any negative impact of
an FTA with Korea would be very limited, reflecting a variety of factors
including current trading patterns and the fact that the vast majority of
Canadian-made vehicles are exported to the United States. Potential import
growth would also be tempered by the new Hyundai plant in Alabama,
which is expected to soon send vehicles to Canada
under the NAFTA.
I find it curious that representatives of the Canadian Auto
Workers Union would muse about the merits of managed trade over free trade,
when the automotive sector benefited from trade liberalization through NAFTA,
with the majority of its production currently exported to the U.S.
market. I would think that the CAW would want to open doors to international
trade, not close them. In fact, through stronger investment rules and tariff
elimination, an agreement with Korea
could enhance opportunities for Canada's
auto parts companies significantly.
Korea
is Canada's
seventh-largest export destination-our exports to Korea
reached an eight-year high of $2.8 billion in 2005. Throughout our
consultations, it's become clear that many Canadian sectors stand to benefit
from free trade with Korea.
Canada's auto
sector-a strong, highly competitive sector-is no different.
Virtually all of Canada's
major competitors are aggressively pursuing FTAs,
including the United States
with Korea. We
are a trading nation. And to remain internationally competitive, we must level
the playing field and ensure that our exporters and investors have competitive
terms of access to international markets.
I would encourage Canada's
auto sector to continue working closely with our federal negotiators, to ensure
that Canada's
negotiating position reflects their views, and that they remain well-positioned
to compete with Korea,
and with the world.
|
