Sklar- Pepler faces hallenges underfreetrade The recently signed free trade agreement between Canada and the United States will create some' "challenges and opportunities" for Skar-Peppler, aecording to -the company's president and chief executive officer, L-ou Skier. The.. Whitby-based company opened its new 40,000-sq. ft showcase, in Mississaua in January, and is. now turning its attention to the agreement. 1'The maýjor difficulty for SkIer- Peppler is the present language ini the agreement which gives American manufacturersaa competitive advantage in the Canadien market, says SkIer. He explined that the most costly ingredient in furniture production 18 fabric or textiles. Under the agreement, while some tariffs between the two count"ies are to be eliminated within.flive years, Sklar says the terrif "on textiles will not be eliminated for ten.years". "We purchase a large jert of our textiles in the U.S. while U.S. compenies will-,be paying no' tariffs," says SkIer, 'adding that the- tariff affects Sklar-Pepplerls ability 1-to - defend ourselves against U.S. companies." He says some companies will not be able to survive the ten-year period over which the agreement will take effect. Sklar's duty is to now lobby the federal governinent to ch ange that aspect of the deal or receive some sort of compensation. Sklar-Peppler now . exports between 12 and 15 per cent of its goods to the U.S. and under the agreement Sklar says the U.S. is going to become an important market. Sklar-Peppler began its operation 25 y"ar ago. In 1963 the company expended its 100,0'00-sq. ft. facilityr to 200,000 sq. ft. and bas neyer looked back. Slar-Peppler -now has two plants in Whitby at wvhich -it manufactures upholstered stationery products such as sofas and chairs. A Toronto- plant produces reciners and sofa beds. while the, Plant in Hanover pr-oddces bedrom and dining room 'furniture. of -solid wood and ve neer. - Mike Moss, general managzer of Furniture Royale in Whitby, says, Canadian furniture mnanufacturers "will have to sharpen their pencil" but generally'should benefit from a free trade agreement. " 'Itl smarten up the Canadian manufacturer," he says. I think Our product can compete successfully with their's on- Bfl level,." 1Furniture Royale currently hes ' no U.S. furniture for retail and, bas 'no pýlans to include it "unitil -we get settled,' says Moss. The - store' opened in"<the Thickson-Dundas, St. E. area 'of Whitby 'at the beginning eof the Year.T I s. t; t! **1 4 ) * s r i L~t "1 i ,1