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Benefits of the CPTPP for Alberta

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trading block that represents 495 million people with a combined gross domestic product of CAD $13.5 trillion – a full 13.5% of global GDP.  Through the CPTPP, Canada will soon have preferential access to 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

Alberta – Asia-Pacific trade snapshot

Top Alberta Merchandise Exports to CPTPP Markets (2015-2017 average)

Pie chart of Alberta’s top exports to CPTPP countries (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 Asia-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 Asia-Pacific countries

The CPTPP provides Alberta’s services suppliers with greater predictability and enhanced market access across a broad range of sectors, including:

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 Asia-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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