Mr. Speaker, I thank my hon. colleague for asking for clarification on a question that she felt was not answered.
I must remind the hon. member that it was the former Liberal government that initiated the free trade discussions with Korea. Therefore, I am surprised that the hon. member is not more up to speed on what the negotiation process is all about.
Since these negotiations were launched in 2005, a free trade agreement with Korea has been a trade policy priority for Canada, and for very good reason. After all, it is the responsibility of the government to ensure that Canadian businesses can compete in international markets, including important strategic markets like Korea, Canada's seventh largest trading partner.
Before launching negotiations, the government conducted comprehensive consultations with the provinces, territories, the Canadian public, businesses and non-governmental organizations. These consultations revealed broad support for an FTA with Korea.
They also revealed that beyond the elimination of tariffs and an improved environment in Korea for Canada's service providers and investors, Canadian businesses wanted the FTA to address non-tariff barriers in Korea's markets. That is why, in the FTA negotiations with Korea, Canada is seeking the most extensive, robust, state of the art provisions we have ever sought in an FTA with respect to non-tariff barriers.
This government is especially aware of the concerns expressed by the Canadian auto industry about Korea's automotive market. That is why Canada is also seeking an array of auto provisions to address specific non-tariff measures identified by the Canadian industry and to establish procedural mechanisms to identify and address potential new non-tariff barriers before they arise.
Beyond non-tariff barriers, of course Canada is seeking an ambitious FTA package on tariffs, services, investment and government procurement, to name some key areas. An FTA with Korea would eliminate all industrial tariffs, including Korea's 8% tariff on automobiles and auto parts. Korea is Canada's fifth largest destination for exports of agricultural products, so elimination of Korea's high tariffs, average applied tariffs of 52.6%, with over quota rates at 800%, will significantly improve Canadian market access in Korea.
The bottom line is that an ambitious FTA would offer gains for Canadians across the country in sectors as diverse as agriculture, agrifood, fisheries, forestry, machinery and equipment, other manufactured products, and financial and professional services. Results from preliminary economic modelling suggests that an FTA with Korea could increase Canada's total merchandise exports to that country by 56%, or $1.6 billion.
Canada's competitors are moving forward with Korea. The U.S. signed an FTA with Korea in June. At the same time, the EU is moving rapidly toward the conclusion of its own FTA with Korea, and Korea is negotiating or actively exploring FTA negotiations with the likes of Japan, Mexico, China, India and others.
Canada cannot afford to stand on the sidelines while other countries move ahead to take advantage of the globalization and the economic dynamism in Asia. We must recall that one in five jobs in Canada is supported by trade. To remain competitive, we must ensure Canadian businesses can compete in international markets, including Korea.
Let us not prejudge the outcome of the negotiations until they have concluded.
Finally, as Minister Emerson has made clear on a number of occasions, the government will only conclude FTA negotiations when they have met Canadian interests.