CPTPP benefits for Canada
- The agreement strengthens and diversifies Canada’s trade and investment in the fast-growing Asia-Pacific region, leading to the creation of new jobs and increased prosperity for Canadians.
- It reinforces Canada’s presence in Asia by creating commercial opportunities with seven new FTA partners (Australia, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam) and strengthens our ties with three existing FTA partners (Chile, Mexico and Peru).
- Through the elimination of tariffs and non-tariff barriers, Canadian exports will increase and expand across a wide range of sectors, including agriculture (beef, pork and vegetable oils), and non-agriculture (forestry, industrial machinery, heavy equipment and services).
- The CPTPP includes, for the first time for Canada, fully enforceable Labour and Environment chapters through its dispute settlement mechanism.
Why the CPTPP matters for Canadian businesses
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership:
- provides significant market access gains for Canadian exporters, especially in markets where Canada previously faced high tariffs, such as Japan and Vietnam
- eliminates tariffs on a wide range of Canadian exports and imports, making Canadian companies more competitive at home and in the international marketplace
- will save Canadian exporters a projected $428 million a year on tariffs alone
- allows Canadian exporters to do business on a level playing field with competitors in CPTPP markets that already enjoy preferential tariff treatment, while gaining an advantage over competitors without the same level of access
- facilitates the integration of Canadian goods and service providers into global value chains spanning the Americas, Europe and the Asia-Pacific region
- simplifies rules associated with trade, making trade fairer, more predictable and more efficient
- offers Canadian investors improved protection, predictability and transparency, as well as enhanced access to fast-growing markets across the CPTPP region
- strategically sets the terms of trade in the Asia-Pacific region with ambitious, forward-looking provisions that seek to keep trade inclusive and sustainable
- makes it easier for small and medium-sized enterprises in all sectors throughout Canada to do business in the dynamic Asia-Pacific region
- The CPTPP results in comprehensive tariff elimination across all sectors. Once fully implemented, 99% of tariff lines among CPTPP parties will be duty free.
- The first six CPTPP parties made their first tariff cut on December 30, 2018, eliminating duties on 89% of tariff lines between them, followed by a second tariff cut on January 1, 2019 (except for Japan, which makes its second tariff cut on April 1, 2019).
- On January 14, 2019, Vietnam brought the CPTPP into force and Canadian exporters were immediately benefiting from Vietnam’s first two tariff cuts.
- Once the agreement is fully implemented:
- 94% of Canada’s exports of agriculture and agri-food products to CPTPP countries will be duty-free, representing an average of $7.8 billion in exports from 2015 to 2017.
- 99% of Canada’s exports of industrial products to CPTPP countries are duty-free, representing an average of $21 billion in exports from 2015 to 2017.
- 100% of Canada’s exports of fish and seafood products to CPTPP countries are duty-free, representing an average of $732 million in exports 2015 to 2017.
- 100% of Canada’s forest product exports to CPTPP countries are duty-free, representing an average of $2.5 billion in exports from 2015 to 2017.
- addresses costly and time-consuming “non-tariff” barriers
- seeks to eliminate unnecessary technical barriers to trade to enhance transparency and promote regulatory cooperation
- helps ensure that market access gains for Canadian agriculture and agri-food, fish and seafood, and forestry exports are not undermined by unnecessary or unjustified sanitary and phytosanitary-related trade restrictions
- The CPTPP makes Canada the only G7 nation with free trade agreements with all other G7 members, and free trade access across the Americas, Europe and the Asia-Pacific region.
- It presents an opportunity to position Canada as a hub for global commerce with preferential access throughout Asia, Europe and the Americas.
- The CPTPP is designed to expand to include new members to increase benefits for both investors and Canadian businesses.
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