isn’t a slam-dunk. “Because Europe is so much bigger a market than we are, in some ways if we don’t hit the ground running and if we as a nation don’t learn to very quickly take advantage of this deal, they could overtake us and they could be benefiting before we start to benefit,” she said. Canada already buys far more each year from the EU ($50 billion in 2012) than it sells ($38 billion), and some fear the agree- ment will exacerbate this uneven trading relationship. This includes the manufacturing sector, which has long been plagued by poor produc- tivity, a strong Canadian dollar and other challenges that could put it at a disadvantage against European competitors. It doesn’t help that more than
half of Canada’s exports to the EU are in the form of raw materials such as metals, which Union for Canada (Unifor) spokesman Angelo Dicaro said often come back as high-value, manufactured goods sold to Cana- dian consumers. The deal also allows for a freer flow of employees across the Atlantic, which has prompted
fierce criticism from some unions over fears European companies will give preference to foreign staff instead of Canadians. A further new Trade Agreement
in the works is between Canada and South Korea. This would represent the first Canadian trade agreement in Asia. There has been some strong criticism though. Phasing out tariffs on imports of South Korean cars over a period of three years is amongst one of them. Under the agreement, Canada's 6.1 per cent tariff on im- ports of South Korean passenger cars would be phased out in three annual cuts — with the first cut com- ing as soon as the agreement comes into force. Going the other way, South Korea's eight per cent tariff on imports of cars coming from Canada would be eliminated as soon as the agreement is implemented, as well as South Korea's three to eight per cent tariff on imports of automotive parts. Sounds good but is it re- ally? Dianne Craig, the Ford Motor Company of Canada’s president and CEO said in a statement that South Korea “will remain one of the most
closed automotive markets in the world”. It cites recent agreements between South Korea and both the U.S. and the European Union, which have “failed to reverse this one- sided automotive trade flow.” Craig says the South Korean government has continued to protect its home market and subsidized its exports through non-tariff barriers and ac- tive intervention in its currency.
Bottom line Free Trade Agreements have its
Pro’s and Con’s. They benefit cer- tain industries and consumers whilst they may threaten others. Markets will evolve and trade will flow. There is no doubt that the lifting of bar- riers will enhance trade, whether this is used as a political tool or truly aimed as a benefit for the Countries involved is open for judgment. What we, in the transportation industry, hope for, is that it will increase demand for our services no matter which way the trade flows.
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