Ontario's economic development minister, Eric Hoskins, has said Korea out-exports Canada 50 to one in autos and he hasn't been assured by Ottawa that Canada's automakers won't be even more disadvantaged once tariffs are removed.
"This deal is likely to further cement Canada's global role as a natural resource supplier, to the detriment of higher value-added sectors, such as the auto industry," said Scott Sinclair, senior research fellow with Canadian Centre for Policy Alternatives.
"Just as concerning as the trade imbalance, is the make-up of our trade with Korea."
He said Canada's sells mostly unprocessed, low value-added, carbon-intensive resources to Korea such as coal, copper and aluminum while importing mostly high-tech, manufactured goods such as autos, electronics and appliances.
"The sudden breakthrough in the talks appears to be driven more by political rather than trade policy factors," said Sinclair.
Canada's already large trade deficit with Korea actually increased last year to almost $4 billion, he said.
Stuart Trew, a trade expert with the Council of Canadians, said he expects any deal will only widen Canada's trade deficit with Korea.
"If things go the same way as they did for the U.S. in the U.S.-Korea FTA, Canada can expect zero export growth and an increased trade deficit," said Trew.
"Considering how similar U.S. and Canadian exports are, I think it's the most likely situation."
Read more: http://www.winnipegfreepress.com/canada/stephen-harper-heads-to-south-korea-to-ink-long-awaited-free-trade-pact-249187361.html
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