Comments Reveal More Conservative Incompetence

International Trade Minister Emerson’s Comments Reveal More Conservative Incompetence(Liberal Party of Canada Press Release)

Ottawa- International Trade Minister David Emerson’s dismissal of the Liberal call to eliminate tariff and non-tariff barriers in a potential free trade agreement with South Korea demonstrates the lack of importance his government places on Canada’s automotive sector, Liberal Trade Critic Navdeep Bains said today.

“The Liberal Party is firmly committed to free trade, which is why we want to ensure Canadian companies have free access to compete in the Korean market,” said Mr. Bains. “The Canadian Motor Vehicle Association and the Canadian Manufacturers & Exporters have endorsed our position. Mr. Emerson's comments reveal his complete misunderstanding of both the Canadian auto industry and the overly protectionist trade barriers currently in place."

Yesterday, Mr. Emerson called the Liberal position “bizarre,” and claimed that the reason Canadian carmakers are shut out of the South Korean market “is probably more to do with the fact that North American auto producers have not really produced the kind of vehicles that are in demand in Korea” than the existing trade barriers between the two countries.

These comments are grossly misinformed and are a tremendous insult to Canada’s auto industry, said Mr. Bains.

“The cars produced by Canadian workers at our world class automotive plants consistently win awards for quality,” he said. “For nearly every 400 cars South Korea ships to Canada, it imports just one. Companies from Japan and other countries face similarly stiff barriers. Does Mr. Emerson truly believe that Korean cars are 400 times better than the Toyotas, Fords, Chryslers, Hondas and GM cars produced in Canada?

“How can Canadians trust the Conservatives to conclude an agreement that ensures our automakers have access to Korean markets, if their Trade Minister thinks the problem is the quality of the cars they're producing?”

According to a recent Canadian Press article, Mr. Emerson’s implied that the recently negotiated free trade agreement between the United States and South Korea has repercussions for Canadian industry and that cars made by Asian manufacturers in the US are currently subject to duties in Canada. Mr. Bains pointed out this clearly shows Mr. Emerson’s lack of understanding of both current trade issues and existing trade agreements.

“The US-South Korea free trade agreement is being stalled by Congress and Mr. Emerson is alone with US President George Bush in thinking it is a done deal,” he said. “If he thinks that cars made in the United States are subject to duties in Canada perhaps he should also reread NAFTA.”

Mr. Bains said he had little faith that the Conservatives will put Canada’s long-term economic interests first, given Mr. Emerson’s history of claiming false victories over hastily signed agreements, as was the case in the flawed softwood lumber agreement that forced Canadian industry to surrender $1 billion in illegally collected duties to United States and did not resolve the longstanding trade dispute. The United States has commenced litigation to resolve issues under the new agreement which severely undermines Mr. Emerson’s statement that his hasty agreement would bring an end to litigation.

“Mr. Emerson doesn’t seem to grasp that standing up for Canadian industry so that they can have free access to foreign markets is good trade policy –not protectionism,” he said.