International Trade committee  We have to ask ourselves, with regard to the net gains we're going to get from this, what are they worth against the net losses, which are much greater here, as far as we can see. We really do have to ask ourselves whether we are dancing with the right partner here.

International Trade committee  The memorandum of understanding that was signed with the United States is proof of that. They showed no significant removal of non-tariff barriers, despite those two--not one, but two--agreements. The proof is in the pudding there. They have no real interest of opening to the market.

International Trade committee  Other than autos, no.

International Trade committee  In some cases, yes. These are vehicles that are being produced for their domestic market, so they would design for that domestic market. When you look to manufacturers from around the world, you need to understand what's going on in terms of different trade blocs and as it relates to vehicle regulations, as an example.

International Trade committee  No, I'm not saying negotiations at all. I'm talking about a very specific snap-back provision when non-tariff barriers arise again. There has to be a proven and consistent absence of those non-tariff barriers to trade. I think we've put forward some very significant proposals that have been ignored by our negotiators.

International Trade committee  Mr. Chairman, may I add to that?

International Trade committee  Well, sure. Part of our ad hoc consultation group have had ongoing discussions with them. This is the point. Those discussions have led to virtually no inclusion of what the auto industry has put forward. As I mentioned, we've put forward some solutions based on some of the most reputable trade lawyers.

International Trade committee  First of all, I don't think my comments are contradictory to those of December 3. We have benefited from free trade agreements, but the free trade agreements that have been negotiated properly, where we have received reciprocal access, and where things have been put in place to actually remove systematically the non-tariff barriers and other barriers that may exist.

International Trade committee  What we have suggested, based on proposals developed by some of the most reputable trade lawyers, are dispute resolution mechanisms involving materially significant and proven removal of NTBs; and if those NTBs are not removed, then we would have a complete snap-back provision of the tariff reduction.

International Trade committee  We agree with Mr. Fedchun's assessment. Ours is very similar as to the timing and the probability of that agreement being signed. I also agree with Mr. Stanford on his assessment.

International Trade committee  Perhaps you are referring to the arrangement that General Motors has with their affiliated company in Korea. In order to gain more than just access to that market, they had to basically buy their way in. The key point here is that given the direction that Canadian negotiators are going in at this time, they also have grave concerns about the Korea free trade agreement.

International Trade committee  In terms of the dealers, these vehicles coming into Canada are faced with the 6.1% tariff. The import numbers have been growing. So whether or not we have an agreement in Canada, the impact would be relatively small.

International Trade committee  Certainly the CVMA and its member companies have been part of an ad hoc consultation group with DFAIT and their negotiators, which we appreciate very much. We made several recommendations and put forward some very significant proposals on how we thought it would be best to approach tariff reductions, dispute resolution mechanisms, and so forth.

International Trade committee  We haven't done any specific studies either, but I certainly concur with Mr. Fedchun on the reality of what chief executive officers are saying. As I mentioned before, we've invested $8.5 billion in the last few years to upgrade plants and make them the most productive, highest-quality plants we can.

International Trade committee  If I may, Mr. Cannan, you mentioned that maybe Canadian industry needs to diversify its approach. As I mentioned in my remarks, and I think it should be well documented in the papers we've provided, the profile of the Korean market is very similar to that of Canada. The products we build in Canada can compete head to head with the market segments in Korea.