September 20, 2006


New CAW study raises concerns about Canada-Korea Free Trade

Ottawa, Ontario – The Canadian Auto Workers Union (CAW) has released an economic study of the federal government’s proposed Canada-Korea Free Trade Agreement. The study raises concerns over the impact of the deal, including the loss of more than 33,000 Canadian manufacturing jobs. CAW president Buzz Hargrove released the study in Ottawa yesterday after meeting with International Trade Minister David Emerson.

“It makes no sense at all for the Canadian government to be pushing for a free trade agreement with Korea at a time when many manufacturers in Canada, including the Big Three automakers, are struggling to maintain and build markets,” the study says.

The study, titled Employment Implications of Trade Liberalization with East Asia, was prepared by CAW economist Jim Stanford, and Daniel Poon of Carleton University’s School of Public Administration.

The study indicates that Canada’s current trade with East Asia results in a net loss of over 180,000 Canadian jobs; most is due to trade with China, but significant job losses also result from current trade with Korea and Japan. The study says that the worst of the job losses have been experienced by strategic, high-technology sectors such as computers, machinery and transportation equipment, especially motor vehicles. A complete text of the study is available at www.caw.ca/campaigns&issues/ongoingcampaigns/korea/index.asp.

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