Benefits of the CPTPP for Manitoba
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 Manitoba
- Tariff elimination: The CPTPP will provide new opportunities for Manitoba exporters by eliminating tariffs on almost all of the province’s key exports, including:
- agricultural and agri-food products (canola seed and canola oil, pork, wheat, malt, frozen french fries)
- industrial goods (metals and minerals)
- fish and seafood products (fish fillets)
- aerospace products (aerospace goods).
- Services exports: The CPTPP will provide more transparent and predictable access for services suppliers in key sectors, including professional and environmental services.
- Temporary entry: The CPTPP will provide improved market access commitments for the temporary entry of high-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.
Manitoba – Indo-Pacific trade snapshot
Top Manitoba Merchandise Exports to CPTPP Markets (2015-2017 average)
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Top Manitoba Merchandise Exports to CPTPP Markets (2015-2017 average)
- Total: $1,436,769,635
- Agricultural Goods: $1,175,989,615
- Industrial Machinery: $82,209,619
- Aerospace: $54,370,205
- Metals and Minerals: $44,479,652
- Forestry: $23,926,035
- Chemicals and Plastics: $14,826,517
Opening new markets for exports from Manitoba to Indo-Pacific countries
The elimination of tariffs will help make exports from Manitoba exports more price-competitive in CPTPP markets. Examples of Manitoba products that will benefit from improved access include the following:
Agricultural and agri-food products
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.
- In Vietnam, tariffs of up to 27% on fresh, chilled and frozen pork will be eliminated within nine years.
Canola seed and canola oil
- While canola seed already enters Japan duty-free, tariffs of up to 13.20 yen/kilogram (kg) on canola oil will be eliminated within five years.
- In Vietnam, tariffs of 5% on canola seed will be eliminated upon the Agreement’s 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 the Agreement’s entry into force.
Malt
- In Japan, a duty-free Canadian-specific quota of 89,000 tonnes will be available upon the Agreement’s entry into force and will provide greater certainty for Canadian exporters.
- In Vietnam, tariffs of 5% on malt will be eliminated within three years.
Frozen french fries
- In Japan, tariffs of up to 8.5% will be eliminated within three years.
- In Vietnam, tariffs of 24% will be eliminated within three years.
- In Australia, tariffs of 5% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of 5% will be eliminated upon the Agreement’s entry into force.
Aerospace products
Aerospace
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
Metals and minerals products
Nickel
- In Japan, tariffs of up to 11.7% or 44 yen/kg, whichever is less, will be eliminated within 10 years.
Fish and seafood products
Frozen freshwater fish fillets
- In Japan, tariffs of up to 3.5% on frozen perch and whitefish fillets will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of 18% will be eliminated upon the Agreement’s entry into force.
Opening new markets for exports of services from Manitoba to Indo-Pacific countries
The CPTPP provides Manitoba’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 10 CPTPP export markets
- computer-related services in Australia, Chile, Malaysia and Mexico
- research and development in Australia, Chile, Japan, 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, Malaysia, Mexico, New Zealand, Peru and Vietnam
- mining-related services in Brunei, Chile, Malaysia and Singapore
- services incidental to energy distribution in Brunei, Chile, Malaysia, New Zealand and Singapore.
Manitoba 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 people
The CPTPP will improve labour mobility for highly- skilled business persons, making it easier for professionals from Manitoba 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 exporters are not undermined by unnecessary measures that restrict trade, such as technical barriers to trade or 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 free trade agreement partners, including Chile and Peru, and secures new access to procurement opportunities in Australia, Brunei, Malaysia and Vietnam.
Facilitating two-way investment between Manitoba and the Indo-Pacific region
The CPTPP’s investment rules will provide greater stability and protection for investors, while preserving the rights of federal, provincial and territorial 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 a fair and transparent investor-state dispute settlement mechanism.
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