Trade: Canadian Auto Trade Industry Headed For Large Trade Deficit
According to the Canadian Auto Workers union, the automotive trade balance is on track to set a record deficit this year. This is the finding of a study conducted by the CAW.
Entitled Canada's Deteriorating Automotive Trade Performance, the CAW report penned by Jim Stanford shows cumulative data that auto exports and imports so far this year will leave Canada with a trade deficit nearing $8 billion.
Currently Canada's largest portion of the trade deficit comes with Japan. Korea and China also account for lop-sided trade deficits. Imports from China for instance have risen by over 1200 per cent over the past ten years.
Canadian Auto Workers union is looking to more attention paid to various free trade agreements and their impact on the Canadian auto sector. At present, Canada is involved with yet another free trade agreement, this time with Korea.
"A free trade deal with Korea will take a bad situation and make it worse," Ken Hargrove of the CAW added. "The government should cancel these talks, and turn its attention to developing the well-rounded auto policy that we need."