Canadian officials reportedly finalized negotiations surrounding the deal earlier this week, with the Conservative government claiming the agreement will lead to a 32-percent surge in exports worth approximately $1.7 billion CAD (~$1.5 billion USD) annually.
Unifor, the Canadian autoworkers union, argues that the move will actually threaten approximately 33,000 manufacturing jobs in the country, including 4,000 in the automotive industry.
“I wouldn’t say it’s the death of the industry, but it’s another nail (in the coffin),” said Unifor president Jerry Dias, as quoted by Reuters.
The federal government has cited a 2012 study from the University of Toronto that estimated a 4,000-vehicle negative impact on domestic production if the tariff on South Korean vehicle imports was eliminated.
Ford of Canada has also spoken out against the deal, however. CEO Dianne Craig argues that no Canadian manufacturer can compete “with a market controlled by non-tariff barriers and currency manipulation,” issues the she claims the agreement fails to address.
The current 6.1-percent tariff on Korean auto imports is set to be eliminated in three annual stages. Similar deals could be implemented for other overseas markets as part of the proposed Trans-Pacific Partnership.
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