Thank you, Mr. Chairman.
First, I'd like to thank you for inviting me to participate and to have a voice before the Standing Committee on International Trade.
On short notice, as of Friday of last week, I have put something together on Canada-South Korea free trade and its effects on the Canadian economy.
First of all, let me tell you a little bit about myself. I am married; I have two children and have been blessed with four grandchildren. I'm a journeyman mouldmaker with over 36 years of experience. Presently I am employed as the president of Platinum Tool Technologies. I have three partners, who are also skilled tradesmen.
Platinum Tool was incorporated on August 17, 1999. In eight and a half years the company has become the leading manufacturer of moulds in North America for the automotive lighting sector. Today the company has 52 employees and utilizes 16,400 square feet for manufacturing along with 4,000 square feet for engineering and administration. The end of this month will be my first anniversary as president of the Canadian Association of Mouldmakers.
I have brought charts for everybody today, but they have not been handed out. The charts and numbers in this booklet, along with the facts that follow, are based on the most recent data available.
The last time Canada had a positive trade balance with South Korea was in 1997. It was $197 million. In the following nine years, to the end of 2006, Canada has had a negative balance with South Korea averaging negative 97.45% per year. Canada's trade deficit for 2006 with South Korea has grown to $2.5 billion for the year. From 1997 to 2006 the Canada-South Korea trade deficit has risen by an astronomical 11,661%. We have amassed a $23 billion trade deficit with South Korea over the last 10 years alone.
How many Canadian jobs must be sacrificed for South Korea? When does it end? What trade deficit must Canadians accumulate with South Korea before we have fulfilled our obligation? Is there a dollar-value target we must attain?
In the mould manufacturing sector, the hemorrhaging has not fared much better. Canadian mould imports from South Korea had grown by 3,885% at the end of 2006 to $13 million, from $345,000 in 1997. In the five years from 1997 to 2001, Canadian mould imports from South Korea grew by 80% per year, to $1.7 million. However, during the next five years—from 2002 to 2006—South Korean mould imports into Canada grew by an additional 86% per year, to just over $13 million a year.
The last time the Canadian mould manufacturing sector enjoyed a positive trade balance with South Korea was in 2002, and it amounted to $1,680,000. By the year end of 2006 the Canadian trade deficit with South Korea stood at $2,111,000 for the mould sector.
In the previous 12 months from December 2005 to November 2006 South Korea exported $3,830,000 into Canada. During the same period, Canadian mould exports were $1,664,000, resulting in a 43% decrease, or a $2,165,000 trade deficit with South Korea for the year.
South Korean total mould exports to Canada ranked them at number nine for the period ending November 2006. During the following year South Korea total export moulds into Canada for the year ending November 2007 has grown to $5,228,000.
The most recent 12-month data from 2006 to 2007 shows South Korea's trade advantage having grown by 87.6%, or a $4,578,000 trade deficit for Canada for the period. South Korea remains the number nine country for mould exports into Canada for the year ending November 2007.
Meanwhile, Canadian mould exports to South Korea for the year ending November 2007 totalled $649,000. For this period, Canadian exports to South Korea represented the largest percentage drop, at 61%, among Canada's ten largest mould-supplying countries. The November 2007 year end showed a trade deficit increase of 77.9% in total mould trade with South Korea for a net difference of $4,578,000.
With more time to research, the Canada—South Korea free trade agreement would only result in my filling you full of negative points. You will have the opportunity to look at the facts and the numbers yourselves.
For the manufacturing sector, and more specifically the mould-manufacturing sector, there is nothing positive that can come out of this agreement. We have bled enough jobs to South Korea's democracy. Now is the time to reach an agreement that is beneficial to all Canadians. The Asian nations have knocked us to our knees, and yet we get up and fight back using technology, innovation, and a skilled workforce.
Let's talk fair trade, not free trade. Level the playing field for tariffs on Korean imports and exports. The net result will be fair trade. What future does the proposed Canada—South Korea free trade agreement offer to my grandchildren and the generations that will follow them? Trade agreements with any country should be developed to allow the small and medium-sized businesses to flourish, as they are the backbone of our economy in Canada. Canada was built on entrepreneurship. Let's keep the entrepreneurial dream alive.
Thank you.