Mar 11, 2014
By Scott Walker
Prime Minister Stephen Harper is on his way back to Canada with a very important document in his briefcase.
Harper signed a Free Trade agreement with South Korea that eliminates virtually all tariffs between the two countries.
Harper says it is the first free trade deal with an Asia-Pacific nation. And it opens the rest of Asia to Canadian goods.
The deal has the potential to increase Canada’s trade with South Korea by 32% and add $1.7-billion to the Canadian economy.
One concern in Ontario is what it will do to the auto sector. Canada currently imposes an import duty of 6.1% on vehicles. The auto sector is worried about the impact of a flood of cheaper Hyundais and Kias. The sector employs 93,000 people directly, and tens of thousands more indirectly in Ontario.