Benefits of the CPTPP for New Brunswick
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 New Brunswick
- Tariff elimination: The CPTPP will provide new opportunities for New Brunswick exporters by eliminating tariffs on almost all of the province’s key exports, including:
- agricultural and agri-food products (frozen french fries, dog and cat food, maple syrup and maple sugar)
- fish and seafood products (frozen snow crab, lobster, herring roe and salmon)
- forestry products and value-added wood products (newsprint, sanitary and household papers, uncoated paper and paperboard, worked coniferous and non-coniferous wood, and lumber).
- Services exports: The CPTPP will provide more transparent and predictable access for service suppliers in key sectors, including professional, environmental, and research and development services.
- Temporary entry: The CPTPP will provideimproved market access commitments for the temporary entry of high-skilled Canadian business professionals.
- Reduced non-tariff barriers: The CPTPP includesstrong 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 includespredictable, non-discriminatory rules for Canadian investors.
New Brunswick – Indo-Pacific trade snapshot
Top New Brunswick Merchandise Exports to CPTPP Markets (2015-2017 average)
Text version
Top New Brunswick Merchandise Exports to CPTPP Markets (2015-2017 average)
- Total: $148,545,227
- Fish and Seafood: $85,780,392
- Metals and Minerals: $22,481,921
- Agricultural Goods: $16,791,400
- Miscellaneous: $9,481,835
- Consumer Electronics and Appliances: $3,736,339
- Industrial Machinery: $3,477,221
Opening new markets for exports from New Brunswick to Indo-Pacific countries
The elimination of tariffs will help make exports from New Brunswick more price-competitive in CPTPP markets. Examples of New Brunswick products that will benefit from improved access include the following:
Fish and seafood products
Lobster
- In Japan, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of up to 34% on prepared lobster will be eliminated within three years.
- In Malaysia, tariffs of up to 8% 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.
Frozen snow crab
- In Japan, tariffs of 4% will be eliminated upon the Agreement’s entry into force.
Herring roe
- In Japan, tariffs of up to 11% will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of up to 24% on most herring roe will be eliminated upon the Agreement’s entry into force, while tariffs up to 34% on certain prepared herring roe will be eliminated within three years.
- In Malaysia, tariffs of up to 8% will be eliminated upon the Agreement’s entry into force.
Fresh, chilled and frozen salmon (including fillets)
- In Japan, tariffs of up to 3.5% will be eliminated within 10 years.
- In Vietnam, tariffs of up to 18% will be eliminated upon the Agreement’s entry into force.
Forestry products and value-added wood products
Newsprint
- In Vietnam, tariffs of 25% will be eliminated within three years.
- In Malaysia, tariffs of 10% will be eliminated within five years.
- In Australia, tariffs of 5% will be eliminated upon the Agreement’s entry into force.
Sanitary and household paper
- In Vietnam, tariffs of 24% will be eliminated within three years.
- In Malaysia, tariffs of up to 25% will be eliminated within five years.
- In Australia, tariffs of 5% will be eliminated upon the Agreement’s entry into force.
Uncoated paper and paperboard
- In Vietnam, tariffs of up to 27% will be eliminated within three years.
- In Malaysia, tariffs of up to 25% will be eliminated within 10 years.
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
Worked wood
- In Japan, tariffs of up to 7.5% will be eliminated upon the Agreement’s entry into force.
- In Australia, tariffs of 5% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of up to 5% will be eliminated within seven years.
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 the Agreement’s entry into force.
- In Brunei, tariffs of up to 20% will be eliminated upon the Agreement’s entry into force.
Agricultural and agri-food products
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.
Dog and cat food
- In Japan, tariffs of more than 36 yen/kilogram (kg) will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of up to 7% will be eliminated upon the Agreement’s entry into force.
Maple syrup and maple sugar
- In Japan, tariffs of 17.5% or 13.50 yen/kg, whichever is greater, will be eliminated within three years.
- In Vietnam, tariffs of 3% will be eliminated upon the Agreement’s entry into force.
Opening new markets for exports of services from New Brunswick to Indo-Pacific countries
The CPTPP provides New Brunswick’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.
New Brunswick 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 New Brunswick 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 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 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 New Brunswick and the Indo-Pacific region
The CPTPP’s investment rules will provide greater stability and protection for investors, while preserving the rights of the 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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