Will The Phasing Out Of Tariffs By Canada To South Korean Cars Affect Your Purchase

Maintaining healthy and harmonious trade relation is critical for all nations in the world irrespective of how small or big they may be. The nature of these trade relations define and determine how relationship would blossom between the involved countries. Offering subsidies and cutting off trade tariffs are some of the calculated ways in which the latter can send messages of friendship, collaboration, coordinated growth and development to each other without threatening their own immediate or long term interests.

However, there are times when certain urgencies lead the decision makers to design such plans that appear to affect the immediate health of the domestic market. These are the times when the concerned nation takes a number of blows in the form of questions, interrogations and demand for explanations from the masterminds running the home economy. An example of such turmoil has surfaced at this very moment in the form of the decision of Canada to phase out tariffs on South Korean automobiles.

Basically, the deal is intended to phase out the 6.1% tariff complete in the next 3 years, a move that will be reciprocated with similar trade advantages by South Korea in the coming decade. While the outcome of this agreement in intended to benefit the economy, many of the automotive giants have expressed their apprehension about this deal which is likely to cast a blow to this otherwise healthy and booming sector. The national president for Unifor that represents a chunk of automobile industry workers in Canada has already slammed the tariff phase out as ‘devastating’.

The federal trade officials however, are maintaining a very positive outlook saying that the impact of the agreement will be almost negligible. As far as facts are figures are concerned, the officials have estimated that there will be no more than a 0.2% decline in domestic production to meet with the norms. So, neither the buyers of vehicles should not panic over raised costs nor should the employees fear losing their positions in the industry. The agreement should be taken given some time and space to reveal the advantages towards the attainment of which it has been carefully and thoughtfully designed in the first place.