South Korea and Canada are to sign a trade deal tomorrow that will have a major impact on various economic sectors in Canada.
The agricultural sector is touted as one of the winners in the deal, with pork and beef exports set to rise. The Canadian automotive industry however, is warning the deal could cost 33,000 jobs in Canada, when a 6.1 per cent tariff on imported South Korean cars is dropped. It is feared Canadian-made cars by Chrysler, Ford and General Motors will not be able to compete.
But according to Lawrence Herman, of Herman and Associates International Trade Council in Toronto, one of the major gains of the agreement is opening up the services market. Services such as banking, construction, consulting, insurance and transportation are all becoming a major field in international trade.
“We are experts in project management and international construction and a whole range of other things, port services, managing transportation infrastructures, those are areas where Canada excels” says Lawrence Herman.
Herman also says the legal framework in which to negotiate any complaints is a benefit. He says this is a modern agreement acknowledging global supply chains that will benefit both sides, and establish a framework for further agreements in the region.
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