Benefits of the CPTPP for the Northwest Territories
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 the Northwest Territories
- Tariff elimination: The CPTPP will provide new opportunities for Northwest Territories exporters by eliminating tariffs on almost all of the territory’s key exports, including:
- fish and seafood products (shrimp, clams and cockles, halibut and mussels)
- metals and minerals products (diamonds)
- other goods (furskins).
- Services exports: The CPTPP will provide more transparent and predictable access for services suppliers in key sectors, including professional, environmental, and research and development 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.
Northwest Territories – Asia-Pacific trade snapshot
Top Northwest Territories Merchandise Exports to CPTPP Markets (2015-2017 average)
Top North West Territories Merchandise Exports to CPTPP Markets (2015-17 average)
- Total: $579,705
- Metals and Minerals: $412,590
- Miscellaneous: $90,241
- Fish and Seafood: $31,878
- Industrial Machinery: $25,850
- Chemicals and Plastics: $11,393
Opening new markets for exports from the Northwest Territories to Asia-Pacific countries
The elimination of tariffs will help make exports from the Northwest Territories more price-competitive in CPTPP markets. Examples of Northwest Territories products that will benefit from improved access include the following:
Metals and minerals products
- In Brunei, tariffs of 5% will be eliminated upon the Agreement’s entry into force.
Fish and seafood products
- In Japan, tariffs of up to 5.3% will be eliminated upon the Agreement’s entry into force, except for shrimp prepared with rice, for which the tariff will be eliminated within 10 years.
- In Vietnam, tariffs of up to 30% on prepared shrimp will be eliminated within three years.
Clams and cockles
- In Japan, tariffs of up to 15% will be eliminated within 10 years.
- In Japan, tariffs of up to 10% will be eliminated upon the Agreement’s entry into force.
Fresh, chilled and frozen halibut
- In Japan, tariffs of 3.5% 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.
- In Japan, tariffs of up to 20% will be eliminated within 15 years.
Opening new markets for exports of services from the Northwest Territories to Asia-Pacific countries
The CPTPP provides Northwest Territories 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.
Northwest Territories 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 Northwest Territories 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 the Northwest Territories and the Asia-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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