Benefits of the CPTPP for Alberta
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trading block that represents 580 million people with a combined gross domestic product of CAD $19 trillion – a full 15.6% of global GDP. Through the CPTPP, Canada has preferential access to more than half a billion consumers in the world’s most dynamic and fast-growing market – a move that will strengthen Canadian businesses, grow the economy, and create more well-paying jobs for middle class Canadians.
Main advantages for Alberta
- Tariff Elimination: The CPTPP will provide new opportunities for Albertan exporters by eliminating tariffs on almost all of the province’s key exports, including:
- Agricultural and agri-food products (canola oil, feed wheat, food wheat, malt, pork and beef)
- Industrial goods (metals and minerals, chemicals and plastics, industrial machinery)
- Forestry products and value-added wood products (lumber, oriented strand board and newsprint).
- Service Exports: The CPTPP will provide more transparent and predictable access for service suppliers in key sectors, including professional and construction services.
- Temporary Entry: The CPTPP will provide improved market access for temporary entry of highly skilled Canadian business professionals.
- Reduced Non-tariff Barriers: The CPTPP includes strong provisions on non-tariff measures, backed up by fast and effective dispute settlement provisions.
- Government Procurement: The CPTPP establishes rules to ensure that Canadian suppliers of goods, services and construction services have access to open, fair and transparent government procurement processes.
- Investment: The CPTPP includes predictable, non-discriminatory rules for Canadian investors.
Alberta – Indo-Pacific trade snapshot
Top Alberta Merchandise Exports to CPTPP Markets (2015-2017 average)
Text version
Top Alberta Merchandise Exports to CPTPP Markets (2015-2017 average)
- Total: $3,616,237,071
- Agricultural Products: $2,127,976,852
- Metals and Minerals: $415,398,852
- Chemicals and Plastics: $349,917,677
- Forestry: $224,814,909
- Petroleum Products: $206,652,647
- Industrial Machinery: $166,692,697
Opening new markets for exports from Alberta in to the Indo-Pacific countries
The elimination of tariffs will help make exports from Alberta’s exports more price-competitive in CPTPP markets. Examples of Albertan products that will benefit from improved access include:
Agriculture and agri-food
Canola seed and canola oil
- While canola seed already enters Japan duty-free, tariffs of up to 13.20 yen/ kg on canola oil will be eliminated within five years.
- In Vietnam, tariffs of 5% on canola seed will be eliminated upon entry into force, while tariffs of up to 20% on canola oil will be eliminated within seven years.
Wheat
- In Japan, Canada will have access to a country-specific quota for food wheat that starts at 40,000 tonnes and will increase to 53,000 tonnes within six years. Mark-ups within this country-specific quota will be reduced by 45 or 50%.
- In Vietnam, tariffs of up to 5% on all wheat products will be eliminated upon entry into force.
Malt
- In Japan, a duty-free Canadian-specific quota of 89,000 tonnes will be available upon entry into force and will provide greater certainty for Canadian exporters.
- In Vietnam, tariffs of 5% on malt will be eliminated within three years.
Pork
- In Japan, tariffs of up to 20% on pork products, including sausages, which are subject to the gate price system, will be eliminated within 10 years.
- Tariffs of up to 27% per cent in Vietnam on fresh/chilled and frozen pork will be eliminated within nine years.
Beef
- In Japan, tariffs of 38.5% on fresh/chilled and frozen beef, as well as tariffs of 50% on certain offal, will be reduced to 9 percent within 15 years.
- In Vietnam, tariffs of up to 31% on fresh/chilled and frozen beef will be eliminated within two years, and tariffs of up to 34% on all other beef products will be eliminated within seven years.
Metals and minerals products
Iron and steel products
- In Japan, tariffs of up to 6.3% will be eliminated within 10 years.
- In Malaysia, tariffs of up to 20% will be eliminated within 10 years.
- In Vietnam, tariffs of up to 40% will be eliminated within 10 years.
- In Australia, tariffs of up to 5% will be eliminated within four years.
Petroleum products
- In Japan, tariffs of up to 7.9% will be eliminated within 10 years.
- In Vietnam, tariffs of up to 30% will be eliminated within 10 years.
Chemicals and plastics
Ethylene polymers
- In Japan, tariffs of up to 6.5% or 22.40 yen/kg, whichever is less, will be eliminated upon entry into force.
- In Malaysia, tariffs of up to 15% will be eliminated within five years.
Carbon
- In Japan, tariffs of up to 3.9% will be eliminated upon entry into force.
- In Vietnam, tariffs of up to 10% will be eliminated upon entry into force.
Forestry products and value-added wood products
Lumber
- In Japan, tariffs of up to 6% will be eliminated within 15 years.
- In Australia, tariffs of up to 5% will be eliminated upon entry into force.
- In Brunei, tariffs of up to 20% will be eliminated upon entry into force.
Industrial machinery
Air or vacuum pumps and compressors
- In Vietnam, tariffs of up to 31% will be eliminated within three years.
- In Malaysia, tariffs of up to 35% will be eliminated within five years.
- In Australia, tariffs of up to 5% will be eliminated within three years.
- In New Zealand, tariffs of up to 5% will be eliminated within seven years.
Taps, cocks and valves for pipes and boilers
- In Vietnam, tariffs of up to 20% will be eliminated within three years.
- In Malaysia, tariffs of up to 25% will be eliminated within five years.
- In Australia, tariffs of up to 5% will be eliminated within three years.
- In New Zealand, tariffs of up to 5% will be eliminated within seven years.
Opening new markets for exports of services from to Indo-Pacific countries
The CPTPP provides Alberta’s services suppliers with greater predictability and enhanced market access across a broad range of sectors, including:
- professional services (e.g. legal, engineering and architectural) and transport services in all ten CPTPP exports markets;
- computer-related services in Australia, Chile, Malaysia, and Mexico;
- research and development in Australia, Japan, Chile, Malaysia, New Zealand, Singapore, and Vietnam;
- construction services in Australia, Mexico, New Zealand, and Vietnam;
- education services in Malaysia, New Zealand, Singapore, and Vietnam;
- environmental services in Australia, Brunei, Japan, Mexico, Peru, Malaysia, New Zealand, and Vietnam;
- mining-related services in Chile, Brunei, , Malaysia and Singapore;
- services incidental to energy distribution in Chile, Brunei, Malaysia, New Zealand, and Singapore.
Alberta enterprises that engage in electronic commerce as a means of trade will benefit from trade rules such as the prohibition on applying customs duties to content transmitted electronically, and ensuring the protection of online personal information.
Improving temporary entry for business persons
The CPTPP will improve labour mobility for highly-skilled business persons, making it easier for professionals from Alberta to provide expertise in CPTPP markets. In particular, the CPTPP facilitates the temporary entry of Canadian business visitors, intra-corporate transferees, investors, highly-skilled professionals, technicians, as well as the spouses of some of these Canadian business persons—contributing to greater certainty and predictability for prospective business entrants.
Reducing non-tariff barriers
The CPTPP includes enforceable provisions to help secure market access gains for Canadian exporters so that they are not undermined by unnecessary measures that restrict trade, such as in the areas of technical barriers to trade and sanitary and phytosanitary measures. As a result, the CPTPP will create a more predictable trading environment for Canadian exporters, without compromising the ability of the government to protect the health and safety of Canadians or safeguard animal and plant health.
Expanding access to government procurement
The CPTPP establishes clear rules to ensure that Canadian suppliers of goods, services and construction services have access to open, fair and transparent processes when bidding for procurement contracts in CPTPP countries. The Agreement expands government procurement commitments with existing partners, including Chile and Peru, and secures new access to procurement opportunities in Australia, Brunei, Malaysia and Vietnam.
Facilitating two-way investment between Alberta and the Indo-Pacific
The CPTPP’s investment rules will provide greater stability and protection for investors, while preserving the rights of the federal and provincial governments to legislate and regulate in the public interest. In areas such as energy, mining, manufacturing, financial services and professional services, Canadian investors will enjoy transparent and predictable access to CPTPP markets. Strong rules will ensure that investors from Canada are treated in a fair, equitable and non-discriminatory manner, allowing them to compete on an equal footing with other investors in CPTPP countries. Canadian investors will also have access to an investor-state dispute settlement mechanism that is fair and transparent.
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