Mr. Speaker, let me begin by thanking the hon. member for his interest in the government's efforts to expand export opportunities for Canadian businesses in South Korea through the negotiation of a free trade agreement. The government shares the hon. member's interests.
Indeed, some within the automotive industry are calling on the government to ensure that Canada's ongoing negotiations with Korea result in improved access to Korea's automotive market through the elimination of tariff and non-tariff barriers. This is why we have consulted with all interested stakeholders in Canada, including automotive manufacturers and workers, since the negotiations with Korea were first launched. This has included both one on one meetings with stakeholders, as well as regular meetings of a dedicated automotive consultative group that meets in advance of each round of negotiations. These consultations date back almost two years and will continue as long as the negotiations proceed.
I can therefore assure the hon. member that Canada's negotiators are doing their utmost to effectively address the concerns and interests of Canadian stakeholders.
The hon. member is surely well aware of the importance that trade plays in Canada's economy, contributing to over 40% of Canada's gross domestic product.
In “Advantage Canada”, the government's plan to strengthen Canada's economy and make it more competitive, we made clear our determination to pursue bilateral agreements with targeted countries. Canada is unfortunately lagging significantly behind its key competitors, not having concluded a single FTA since 2001. Since then, Canada's main competitors have been aggressively concluding agreements.
The early April conclusion by the United States of an FTA with Korea risks putting Canadian businesses at an unequal footing unless Canada can negotiate a comparable agreement to level the playing field.
Korea also has FTAs with trading partners such as Singapore, Chile and EFTA and ASEAN countries, and will soon begin negotiations with the EU. It is therefore important for Canada to ensure that Canadian exporters and investors have competitive terms of access to Korea's markets.
South Korea is a valued trading partner for Canada and represents a gateway to northeast Asia, a region of strategic importance to global value chains. In 2006 Korea was Canada's seventh largest trading partner, with Canadian exports totalling a record $3.3 billion.
A free trade agreement with Korea would offer the possibility of enhanced market access for a wide range of Canadian goods, services and investment opportunities, including due to Korea's relatively high average tariff.
For example, we expect gains in agriculture, particularly in beef, pork, canola and barley, fish, forestry, medical devices, pharmaceuticals and financial and professional services. In this regard, the government has received broad based support from stakeholders across Canada for FTA negotiations with Korea.
The government is aware of the concerns that have been expressed by the Canadian auto industry with respect to the closed nature of Korea's automotive market. FTA negotiations with Korea provide an excellent opportunity to address industry concerns regarding tariff and non-tariff barriers in Korea.