South Korea trade deal could save you money — someday

CBC News Posted: Mar 12, 2014 5:00 AM ET Last Updated: Mar 12, 2014 6:57 AM ET

The Canada-South Korea free trade agreement, which is expected to remove nearly all tariffs between the two countries, has been well received by various sectors of the Canadian economy — with the exception of the automotive industry, which has raised concerns about the potential for tens of thousands of manufacturing jobs lost.

The government insists 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.

Canadian exporters of agricultural products such as beef, pork, canola and grains will be among the winners in the free trade deal with South Korea, but the benefits to Canadian consumers may not be as striking.

However, International Trade Minister Ed Fast told CBC News Network's Power & Politics on Tuesday that the elimination of tariffs would be good for Canadian consumers.

"We're going to see better value for the consumer, there will be greater choice for our consumers. If you ask consumers on the street, 'Would you like to pay a little bit less for your TVs that you buy?' they would say absolutely yes."

Here are some of the products imported from South Korea that Canadian consumers could expect to pay less for:

Vehicles: Canada will drop its 6.1 per cent tariff on imports of South Korean vehicles over a three-year period, with the first cut coming once the agreement is in force. Two years after the agreement is in effect, tariffs will be completely eliminated, which means Canadians can expect prices to come down on South Korean-made makes such as Kia and Hyundai.Appliances: Canada will eliminate tariffs that currently run up to eight per cent on major appliances within three to five years. That means Canadians can expect to pay less for refrigerators, stoves, washers and dryers made by LG and other South Korean brands.Electronics: Duties run up to 14 per cent on consumer electronics imported from South Korea. Under the new free trade agreement, Canada will drop its tariffs over three to five years, and Canadians can expect to see prices come down on digital cameras, video camcorders and TVs made by Samsung and others in South Korea.Apparel and footwear: Canadians can expect to pay less for clothes and shoes made in South Korea once duties that currently run up to 20 per cent are removed over a period of three to 11 years.

While cars and major appliances figure on the list of top 25 products Canada imports from South Korea, consumer electronics, clothes and shoes do not, because Canada does not import them in significant amounts.

When it comes to paying less for imported goods, consumers in South Korea may come out a little further ahead than Canadian consumers. Under the new trade deal, South Korean shoppers could pay less on a greater array of food products.

Here are some of the products exported from Canada that South Korean consumers could expect to pay less for:

Vehicles: As soon as the agreement comes into force, South Korea will drop all existing tariffs on imports of Canadian vehicles. Current duties run up to eight per cent.Fish and seafoodLeather clothingBeef, pork, canola and grainsFrozen french fries Maple sugarRye whiskyIce wineChickpeas and lentils

The prospect of South Korea dropping its tariffs, which run up to 27 per cent, on chickpeas, primarily grown in Saskatchewan, did not go unnoticed by Premier Brad Wall, who thought it important enough to highlight in a post on Twitter.

Oh and phase out of Korean duties on our chick peas and lentils is also part of the @pmharper Korean trade deal. 3-5 yrs.

— Brad Wall (@PremierBradWall) March 11, 2014

Consumers will not feel the savings for some time to come, as there will have to be a legal review of the final trade agreement followed by translation into Korean, English, and French before it is tabled in Parliament and then ratified by both governments.

While it is not known how long that could take, the Canadian government hopes to have the agreement come into force "as soon as possible."

Back to the future with Brian Mulroney and Jean-François Lisée Mar. 11, 2014 3:50 PM This week on The House, former Prime Minister Brian Mulroney compares the crisis in Ukraine to what he dealt with at the height of the cold war. Then, PQ cabinet minister Jean-François Lisée talks about when another referendum in Quebec might be held. Minister of State for Democratic Reform Pierre Poilievre defends the Fair Elections Act. And In House panellists Terry Milewski and Emmanuelle Latraverse weigh in on the week that was in Canadian politics.

View the original article here

Read More

GM recall of 1.6M cars prompts lawmaker probe

General Motors faced more pressure over its handling of a deadly defect in certain compact cars Tuesday as word leaked of a criminal investigation and two congressional committees opened probes into the matter.

The Justice Department is investigating whether GM broke any laws with its slow response to a problem with ignition switches in compact cars from model years 2003 to 2007, according to a person briefed on the matter. The probe is being handled by the U.S. Attorney's Office in New York, said the person, who asked not to be identified because the investigation has not been made public.

Spokesmen for the Justice Department and GM would not comment. The investigation was first reported by Bloomberg News.

At issue is why GM waited until February to recall 1.6 million older-model compact cars worldwide (including in Canada), even though it admitted knowing about the problem for a decade. The faulty ignition switches have been linked to 31 crashes and 13 deaths. Committees in the House and Senate also want to know why the government's road safety watchdog, the National Highway Traffic Safety Administration, didn't take action sooner.

GM announced last month it will replace ignition switches that can shut off car motors unexpectedly. When that happens, drivers lose power-assisted steering and brakes and can lose control of the cars. The ignition can slip from the run position to accessory or off, due partly to heavy key chains dangling from the steering column.

Also, if the ignition switch isn't in the run position, air bags may not inflate if a crash occurs.

An Associated Press review of a NHTSA database found that drivers started submitting complaints about the problem in early 2005, shortly after the first Chevrolet Cobalt went on sale. The review of complaints about the Cobalt, GM's top-selling small car in the mid-2000s, found 173 instances of engine stalling or air bags failing to deploy, both symptoms of the ignition problem. Many drivers reported problems with keys sticking in the ignition in addition to the stalling.

Fred Upton of Western Michigan, the chairman of the House committee, said in a statement Monday that a hearing will be held in the coming weeks.

Marketing expert Ken Wong of Queen's University says the damage to GM's reputation is enormous. "[It's] catastrophic, not only because the incident occurred, but because there is substantial evidence that GM was aware of the incident long before it took any corrective action."   

Congress passed legislation in 2000 requiring automakers to report safety problems quickly to NHTSA. The laws came after an investigation into a series of Ford-Firestone tire problems.

Upton said the committee wants to know if GM or the agency missed something that could have flagged the problems sooner.

"If the answer is yes, we must learn how and why this happened, and then determine whether this system of reporting and analyzing complaints that Congress created to save lives is being implemented and working as the law intended," Upton said.

NHTSA has said the rate of problems in the GM cars was not significantly different from similar vehicles.

The prospect of congressional hearings means more bad publicity for GM, which is trying to distance itself from a reputation for building lousy cars. The company has said it's more focused on quality since emerging from bankruptcy protection in 2009.

"It's the old GM haunting the new GM," said Jake Fisher, director of auto testing at Consumer Reports magazine. "They have a lot of the old products still hanging around."

Fisher said GM's new cars and trucks will have to be better than the competition to lure back buyers who swore years ago to never again to buy a GM car.

NHTSA already has demanded information from GM about when it knew of the ignition problem. The agency could fine GM up to $35 million for a delayed response. Automakers must report safety problems to NHTSA within five days of learning about them.

GM said in a statement that it's co-operating with NHTSA and the House committee.

On Feb. 13, GM announced the recall of more than 780,000 Cobalts and Pontiac G5s (model years 2005-2007). Two weeks later it added 842,000 Saturn Ion compacts (2003-2007), and Chevrolet HHR SUVs and Pontiac Solstice and Saturn Sky sports cars (2006-2007).

GM said Monday that it has hired attorney Anton Valukas to investigate the company's actions before the recall. Valukas, who investigated the 2008 collapse of Lehman Brothers for a bankruptcy court. GM has promised an "unvarnished" investigation into the recall.

View the original article here

Read More