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Stephen Harper touts South Korea deal 'wins' on B.C. visit

Prime Minister Stephen Harper was in B.C. today, where he touted the benefits of the Canada-Korea free trade deal not only for the provinces, but particularly for B.C.

The free trade agreement is expected to eliminate nearly all tariffs between the two countries, giving Canadian businesses increased access to South Korea and a window into other Asia-Pacific markets.

"There is no province that is going to benefit from this deal with Korea more than British Columbia," Harper told a B.C. Chamber of Commerce gathering in Vancouver, where he stopped on his way back from South Korea.

"B.C. business has tremendous gains and obviously B.C. business is more aware of the export opportunities that exist in Korea and through Korea to other Asian markets," Harper said.

Harper was in B.C. taking part in a moderated question and answer session with John Winter, the president and CEO of the B.C. Chamber of Commerce.

The free trade agreement would also see South Korea drop its three per cent tariffs on liquefied natural gas, giving Canadian exporters duty free access for their products.

While Canada does not currently export LNG to South Korea, the agreement would help Premier Christy Clark's push to broaden those markets into the wider Asia-Pacific region.

Winter called the elimination of those tariffs "a good step going forward."

The trade deal has been well received by most sectors of the Canadian economy with the exception of those in the automotive industry, who worry the deal will cost Ontario tens of thousands of manufacturing jobs.

Harper defended the free trade agreement against those claims saying, "We know there is some division of opinion in the auto sector, but there are parts of the auto sector that are very supportive?," the prime minister said pointing to Honda and Toyota.

The Japanese firms, both of which manufacture cars in Canada, have come to welcome the deal in the hope that Canada will eventually sign a similar one with their home country.

While Ford has not been supportive of the agreement, Harper said South Korean cars are already being imported duty-free through the U.S. and its free trade deal with South Korea.

"We're in an era where we are not going to win by trying to protect sectors. We have got to get out there, we've got to compete with the best and we've got to win," Harper said.

On the whole, Harper said that having South Korea drop tariffs, which run up to three times higher than Canada's, represents "some very, very big potential wins in terms of making Canadian goods much more competitive?."

The federal government insists the concerns expressed by Ontario's auto sector are overblown, saying the effects of removing Canadian tariffs on South Korean cars would be "negligible," citing a 2012 study conducted for the Department of Foreign Affairs that shows the potential for job losses in the hundreds — not tens of thousands.

Harper used the public event to join other G7 leaders in calling on Russia to back away from a referendum in Ukraine's Crimea region.

"All of the G7 countries remain collectively strongly committed to the view that we will not accept Russia's illegal occupation of Crimea," Harper said.

When Harper was in Vancouver for a similar event in January, two climate change activists managed to sneak up behind him and onto the stage where he was sitting.

"I'm glad we got through this alone on the stage," Winter said, drawing laughs and applause from the business audience.

"I think B.C.'s reputation has been tattered," the moderator joked as he wrapped up the question-and-answer session.

"I was going to say, it doesn't really feel like B.C.," Harper said laughing along.


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Are mom-and-pop variety stores a dying breed?

CBC News Posted: Oct 25, 2013 11:42 AM ET Last Updated: Oct 25, 2013 4:05 PM ET

Is the mom-and-pop convenience store a threatened species?

Things are certainly getting tougher for the independently run dépanneurs and variety stores that dot Canada’s urban landscapes. Since 2008, 2,252 convenience stores have closed across Canada and the majority of those affected were independently owned.

The Canadian Convenience Store Association estimates stores lost $254 million in 2012, compared to profit of $1 billion in 2011.

US Mega Millions Winner Independently run convenience stores are finding it harder to survive because of new entrants to the market, high credit card fees and multiple regulations, according to the Canadian Convenience Store Association. (Associated Press)

Its annual state of the industry report points to a more competitive environment for the industry, with big companies such as Shoppers Drug Mart encroaching on the sector after its purchase by Loblaws.

There is also more chain ownership, with companies such as Alimentation Couche-Tard Inc. spreading its footprint. Of the 23,000 convenience stores in Canada, about 45 per cent were independently owned in 2012, down from 48 per cent the previous year.

Alex Scholten, president of the CCSA, said independent stores are getting squeezed, not only by competition, but also by rising credit card fees, contraband tobacco and regulations constraining the industry.

“What we’re seeing is a trend in the industry where the small independents who are not changing or adapting to the Canadian environment are going out of business. The chains are becoming more prevalent in the industry, so we’re seeing a shift in the nature of the industry and who’s in it,” he said in an interview with CBC’s Lang & O’Leary Exchange.

But he believes even small independents can be competitive, if they get some fundamentals right.

“Convenience store operators have to recognize what their strengths are. Our primary strength is time – we know the consumer out there is time-strapped and as long as we are able to get them in and out of the store quickly, offer them products they’re looking for and make sure that prices are not at a level that is insulting to them, I think we can continue to compete,” Scholten said.

He said it will take some innovation to stay ahead of the new competitors emerging in the market.

“One of things in our state of the industry report this year, we noticed that over 90 per cent of the stores that offered fresh food or food prepared on site were actually in a profitable position,” Scholten said.

One of the industry’s big concerns is high credit card fees and the industry association is looking at ways to expand debit card use in convenience stores, he said.

A loosening of provincial liquor laws might also provide a new way to attract business, he said.

“Certainly having the ability to offer a new product area, such as beer and wine outside of Quebec and Newfoundland where those are available, will offer a big advantage to our industry as well,” Scholten said.

He also points to the estimated 868 federal, provincial and municipal regulations that affect convenience store operators in Canada on everything from tobacco sales  to taxation and said the CCSA is pushing for a more streamlined regulatory regime.

“By eliminating out of date regulations, simplifying others or avoiding new, unnecessary regulation, we could achieve major improvements to the profitability of our members and to the Canadian economy in general,” he said in a press release.

“For this reason, we are calling upon governments to alleviate this burden, which we believe will trigger the creation of thousands of jobs and preserve a unique family business model that generates billions in tax revenues for the government."

Oct 27, 2013 12:00 AM ET Oct 27, 2013 12:00 AM ET Oct 27, 2013 12:00 AM ET Oct 27, 2013 12:00 AM ET Oct 27, 2013 12:00 AM ET

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