Reaction mixed on South Korea trade deal

Finance Jim Flaherty says Ottawa is nearing a free-trade agreement with South Korea. He made the comment following a speech to the Asia Society in Hong Kong on Monday. Mr. Flaherty is currently on a tour of Asia, ostensibly drumming up business.

The long-stalled free-trade talks were restarted late last year when Canada’s federal government increased efforts to make progress in a push to expand trade to Asia

Canada’s auto makers are against any free-trade agreement with South Korea. They oppose granting duty-free entry for Hyundai and Kia vehicles into Canada.

Those who favour a deal include Canadian agri-food exporters. They say they are losing market share to rivals from the U.S. and Europe that already have free trade with South Korea.

Trade experts say Canada almost certainly will have to make concessions on autos if it wants better access for beef and pork.

Several auto industry sources are expressing doubt that an agreement with South Korea is as close as Mr. Flaherty suggests. They point to a reorganization of government ministries in South Korea being undertaken by newly elected President Park Geun-hye that includes a shakeup of the trade ministry.

Even if Canada reaches a deal in the short term, ratification and full implementation could take as long as five years.

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