Dianne Craig, president and CEO of Ford Motor Company of Canada, strongly opposes the newly announced Canada-South Korea free trade agreement, which she deems to be one-sided in favour of the latter.
“We believe that South Korea will remain one of the most closed automotive markets in the world under the deal negotiated by the Canadian government,” she said, referring to South Korea's long history of maintaining a closed market through non-tariff trade barriers and actively intervening in its currency to unfairly subsidize its exports and protect its home market.
Over the last two years, both the U.S. and European Union free trade agreements with South Korea have failed to reverse this one-sided automotive trade flow. According to Ford, since the U.S. signed its trade agreement with South Korea, the U.S. trade deficit has actually worsened by more than 50%, and the volume of all American goods exported to South Korea has dropped by nearly $2 billion.
Ford's Oakville assembly plant in Ontario ships to more than 50 countries today. However, “no Canadian manufacturer can compete with a market controlled by non-tariff barriers and currency manipulation,” Craig added.
The Canadian government is disappointed with Ford's reaction, and pointed out that thanks to the U.S.-South Korea free trade agreement, backed by Ford, the automaker has benefited from privileged access to that Eastern Asian market.
Under the Canada-South Korea free trade agreement, South Korea will eliminate its 8% import tax on Canadian vehicles and parts, while Canada will reduce its own import tax from 6.1% to 4% on South Korean vehicles and parts ― all within 24 months.
“We believe that South Korea will remain one of the most closed automotive markets in the world under the deal negotiated by the Canadian government,” she said, referring to South Korea's long history of maintaining a closed market through non-tariff trade barriers and actively intervening in its currency to unfairly subsidize its exports and protect its home market.
Over the last two years, both the U.S. and European Union free trade agreements with South Korea have failed to reverse this one-sided automotive trade flow. According to Ford, since the U.S. signed its trade agreement with South Korea, the U.S. trade deficit has actually worsened by more than 50%, and the volume of all American goods exported to South Korea has dropped by nearly $2 billion.
Ford's Oakville assembly plant in Ontario ships to more than 50 countries today. However, “no Canadian manufacturer can compete with a market controlled by non-tariff barriers and currency manipulation,” Craig added.
The Canadian government is disappointed with Ford's reaction, and pointed out that thanks to the U.S.-South Korea free trade agreement, backed by Ford, the automaker has benefited from privileged access to that Eastern Asian market.
Under the Canada-South Korea free trade agreement, South Korea will eliminate its 8% import tax on Canadian vehicles and parts, while Canada will reduce its own import tax from 6.1% to 4% on South Korean vehicles and parts ― all within 24 months.