|By Jay Elliott-Purdy||
|May 26, 2014 12:43 PM EDT||
Canadian Prime Minister Stephen Harper has been hard at work closing a deal with his South Korean counterpart President Park Geun-hye. And the agreement that the two leaders have been working on is the Canada-Korea Free Trade agreement. On the 11th March 2014 the free trade agreement was signed, sealed and delivered and it promises to eliminate 98% of duties on all goods between the two countries. This ground-breaking development has been over nine years in the making, and it offers Canadian investors a fantastic opportunity to tap into the rich South Korean market. For South Korea, this is but one of many massive free-trade agreements that the country has recently signed. Economic analysts point to the recent free-trade deals with the US, the EU and Australia.
How should Canadians feel about the Free Trade Agreement with South Korea?
Free-trade agreements typically provide cannon fodder to opponents of these agreements who worry that local industry will be severely impacted by the elimination of tariffs and duties between nations. Let's assume that a manufacturer in Ontario has been producing vehicles or heavy machinery for export to foreign countries and that tariffs and duties in Canada make imports from foreign countries competitively priced so that local industry can sustain itself. In the absence of tariffs and duties, foreign-produced vehicles - perhaps from South Korea - may in fact be cheaper than domestically produced vehicles, machinery, or equipment. Therein lies the dilemma in respect of free-trade agreements. Fortunately, various safeguards and clauses can be added to protect local industry.
In the US for example, President Barack Obama recently concluded the biggest free-trade agreement in the history of the US known as the Trans-Pacific Partnership (TPP). This free-trade agreement will allow the US to reposition itself as a major economic power in the Pacific, to counter China's growing influence in the region. Again, critics of this free-trade deal worry that the elimination of tariffs, duties and other taxes will make US industries vulnerable to foreign producers. However, the benefits of free-trade agreements are extensive. Since tariffs, duties and excise taxes are effectively eliminated the consumer gets to pay less for goods that are imported from the signatories of the free-trade agreement.
Free-trade deals lower costs for consumers; the trick is to protect local industry from job losses and lower levels of production. What is beneficial to Canada in this instance is that South Korea is a highly advanced country where GDP per capita is among the highest in the world. This means that labour costs, and production costs are similar to Canadian standards of living - so the discrepancies will not be as glaring as they might be if the free-trade agreement was concluded with China. The GDP per capita in South Korea is $24,328 (IMF figures for 2013) while the GDP per capita in Canada for 2013 is $51,989 (IMF figures for 2013).
Ways that Canadians will Benefit from the Free-Trade Agreement
Food producers will benefit immeasurably from this new deal. South Korean duties on seafood, beef and pork have traditionally been very high, but within 15 years they will be removed. Border taxes will also be eliminated on ice wine, lumber, liquefied natural gas, whiskey and the like. Now for more good news: Canada's gross domestic product is expected to rise by $1.7 billion. This is over and above the recent trade deal that was concluded with the European Union in October 2013.
More importantly, the expansionary policy being adopted by the conservative government in Canada is likely to lead to additional free-trade deals with other Asian Tigers like Japan. Unfortunately, Canada was unable to protect its automobile industry with retaliatory measures such as the snapback mechanism that the US negotiated in its free-trade deal with South Korea. There are ways for the South Koreans to make Canadian vehicles more expensive to the local market by imposing greater taxes on imports from Canada.
The 6.1% duty that is currently being levied on all Korean auto imports will all but disappear within 2 years of the finalized trade agreement. This will make South Korean vehicles significantly cheaper - thereby endangering domestic automobile manufacturers. A nifty clause has been included that allows Canada to impose tariffs if the number of South Korean vehicles gets too high.
Supporters of the free trade agreement with Canada/South Korea insist that the deal is far bigger than the automobile industry. The benefits to Canadians extend far and wide. Beef producers and pork producers are particularly pleased at the deal. Their only regret is that the Canadians were unable to negotiate a more rapid phasing out of tariffs in key sectors where Canadian exports are strong.
According to the Canadian government, the Canada-Korea free trade agreement is likely to create thousands of jobs and increase Canadian exports to South Korea by at least 32%. It is also Asia's fourth biggest economy valued at $1.1 trillion. The Canada-Korea Free Trade Agreement will make it possible for Canadian businesses to expand into South Korea and enjoy duty-free access on 81.9% of tariff lines in South Korea. Money saved is like cash in the bank!
Risk Disclaimer: Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. The information provided can under no circumstances be considered as a recommendation to engage in any trade.
Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (AFS license No. 246566).
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 24, 2017 03:00 PM EDT Reads: 1,828
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 24, 2017 02:45 PM EDT Reads: 515
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 24, 2017 02:15 PM EDT Reads: 1,028
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 24, 2017 01:45 PM EDT Reads: 400
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 24, 2017 01:30 PM EDT Reads: 523
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Apr. 24, 2017 01:15 PM EDT Reads: 2,110
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 24, 2017 12:45 PM EDT Reads: 538
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 24, 2017 12:00 PM EDT Reads: 2,078
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Apr. 24, 2017 12:00 PM EDT Reads: 2,368
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTred processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Apr. 24, 2017 11:45 AM EDT Reads: 2,609
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
Apr. 24, 2017 11:30 AM EDT Reads: 1,011
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Apr. 24, 2017 11:00 AM EDT Reads: 463
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
Apr. 24, 2017 11:00 AM EDT Reads: 3,285
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 24, 2017 10:30 AM EDT Reads: 409
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 24, 2017 10:15 AM EDT Reads: 4,759