CIIT Committee Report

Recommendation 1:

That the Government of Canada make every effort to ensure that Canada negotiates access to the Korean market on the same or better terms as already gained by its international competitors.

Recommendation 2:

That, to ensure that Canadian industries are not put at a disadvantage in the Korean market in the future, the Government of Canada negotiate a most-favoured nation clause in the Canada-Korea free trade agreement.

Recommendation 3:

That, in the event that a free trade agreement with Korea is signed, the Government of Canada not include accelerated tariff phase-out provisions for automobiles and related parts.

Recommendation 4:

That, in the event that a free trade agreement with Korea is signed, the Government of Canada should seek an expedited dispute resolution mechanism for disputes related to non-tariff barriers in the auto sector. Similar provisions in the Korea-U.S. free trade agreement should be used as a model.

Recommendation 5:

That the Government of Canada include a snap-back provision in any free trade agreement with Korea. Under such a provision, if an expedited dispute resolution mechanism demonstrates that Korea is not living up to its commitments to eliminate non-tariff barriers in autos, then Canada would automatically revert to its Most-Favoured Nation tariff rate on Korean autos and auto parts.

Recommendation 6:

That the Government of Canada make any free trade agreement with Korea conditional on restoring access for Canadian beef exporters to the Korean market.

Recommendation 7:

That the Government of Canada include a definition of ice wine in the text of a free trade agreement with Korea, as well as reference to geographic indicators for Canadian spirits and wine-producing regions.

Recommendation 8:

That, in the event that a free trade agreement with Korea is signed, and once the details of that agreement are known, the Government of Canada study the expected impact on all major sectors of the Canadian economy and, if warranted, consider providing financial transition support to any sector adversely affected by the agreement.

Recommendation 9:

That, in light of recent job losses in Canadian manufacturing and the potential effect of a Canada-Korea free trade agreement on employment in that sector, the Government of Canada explore the adequacy of existing worker retraining programs, both in terms of effectiveness as well as funding levels.

Recommendation 10:

That the Government of Canada seriously consider pursuing alternatives to the NAFTA free trade model, for example, by investing in a vigorous trade promotion strategy that builds the Canadian brand abroad.