If I could, I'd like to just make final comments in response to the question.
First, quickly picking up on the study that the CAW put out, I'm not as convinced that's a good study. There are all kinds of problems with it, which we don't really have time to go into.
First of all, it assumes that deficits are bad, that trade deficits necessarily are a negative thing for Canada. I think that's a very old-fashioned way of thinking.
Secondly, it assumes low or non-sensitivity of response of Canadian exports to Korea as a result of the reduction of tariffs. That is an ad hoc imputation into the model, which really cannot be defended, or at least one can put in a variety of other assumptions.
And thirdly, it does not take into account the benefits of consumer welfare. The fact that there are more imports suggests that consumers want to buy more imports, they are getting better value for the products that are brought in from other countries, and the consumer welfare that is generated is an economic benefit for the country. That is not built into the model that has been quoted a number of times. In short, that model uses what we call partial equilibrium. It creates a problem that is known as the fallacy of composition.
If I could get to the specific question to me from Mr. Julian, I'm not sure that the deal is out of the question at the moment, but he raises a very good point. If we don't have a deal, what else can we do? I hope that we can continue to work on bilateral issues on a sectoral basis, particularly on the issue of people-to-people flows, visas, travel arrangements, trade facilitation, trade promotion.
The only problem, of course, is that it's not possible to advance trade liberalization on a sectoral basis and to still stay within the rules of the WTO. If you want to have an FTA, you have to have a comprehensive FTA, according to article XXIV of the WTO, and that would mean the type of free trade agreement that is being contemplated at the moment.
Chairman and committee members, I thank you very much for inviting me to participate. I'm sorry that I can't stay for the rest of the meeting.
I would be delighted, and the foundation would be delighted, to continue to contribute to this process in any way that we can be of help.