Premier Wynne and her Minister of Economic Development, Trade and Employment Eric Hoskins have been critical of Canada's new Free Trade agreement with South Korea. While they admit it will open new markets for the agriculture and food sectors, not to mention the benefits to all consumers who will see lower prices as a result of this deal, they claim that "sufficient safeguards" were not negotiated for the auto industry.

They want special treatment for Ontario's chosen industry. To go along with the existing subsidies doled out by both the feds and Ontario – which itself acts as a non-tariff barrier to trade – the Ontario government wants tariffs and delays imposed on Korean imports so they cannot undersell Canadian-made cars.  

Instead of looking out for the interests of all Ontarians, this government has chosen a special interest group and are actively lobbying on its behalf.

As for the auto manufacturing industry here in Ontario, instead of finding efficiencies to lower prices, or working to offer a better product, they go cap-in-hand to the government for protection. Even worse, Unifor's union rep is attempting to pit regions against one another, claiming the feds chose the interests of Alberta over those in Ontario. Not only is this untrue, it is petty, wedge politics of division, and not where the Wynne government ought to receive its cues. 

The government should not pick winners and losers in the economy, but that is exactly what the Ontario government is asking for from the Feds. Protectionist policies like those suggested undermine competition, reward government lobbying in lieu of innovation, and ultimately only harm the consumer, who will be stuck with an inferior product at a higher price. 

We should celebrate free trade, and continue to debunk the myths of modern day mercantilism calling for government protection against foreign competition. Removing Canada's 6.1 per cent import duty on South Korean cars is akin to a tax cut on imports. 

As an aside, free trade and open markets have helped pull billions of the world's people out of abject poverty over the past two-and-a-half centuries (since Adam Smith explained his theory of the invisible hand of the market). Market liberalism is a major element of our free society and has helped build prosperity, freedom, and democracy in North America, Europe, and now spreading throughout Asia. Economic interdependence and trade agreements are also attributed with building peace and stability in the post-war era.

Of course nations should trade freely, and the more agreements signed, the more tariffs and barriers removed, and the greater economic co-oporation around the world, the better. 

Here are some specs from this win-win trade deal:

• South Korea gross domestic product: $1.1 trillion.
• Canada gross domestic product: $1.8 trillion.
• Canada-South Korea merchandise trade in 2012: $10.1 billion.
• Average South Korea tariffs on Canadian goods: 13.3 per cent.
• Average Canadian tariffs on South Korean goods: 4.3 per cent.
• Tariff lines to be eliminated by South Korea once deal fully implemented: 98.2 per cent.
• Tariff lines to be eliminated by Canada once deal fully implemented: 97.8 per cent.
• Tariff lines to be eliminated by South Korea on first day of implementation: 81.9 per cent.
• Tariff lines to be eliminated by Canada on first day of implementation: 76.4 per cent.