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Benefits of the CPTPP for Saskatchewan

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 Saskatchewan 

Saskatchewan – Asia-Pacific trade snapshot

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

Pie chart of Saskatchewan’s top exports to CPTPP countries (2015-17 average)
Text version

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

  • Total: $2,546,408,535
  • Agricultural Products: $2,130,232,630
  • Fertiliser: $310,166,722
  • Industrial Machinery: $63,253,804
  • Metals and Minerals: $18,600,582
  • Consumer Electronics and Appliances: $8,497,996
  • Petroleum Products: $7,324,977

Opening new markets for exports from Saskatchewan to Asia-Pacific countries

The elimination of tariffs will help make exports from Saskatchewan more price-competitive in CPTPP markets. Examples of Saskatchewan products that will benefit from improved access include the following:

Agricultural and agri-food products

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.

Barley

  • In Japan, food and feed barley fall under a quota system with mark-ups. Feed barley in Japan will be duty-free and quota-free upon the Agreement’s entry into force; mark-ups that Japan applies to the price of food barley will be reduced by 45% within eight years.
  • Canada will also have access to a CPTPP-wide quota for food barley that starts at 25,000 tonnes and will grow to 65,000 tonnes within eight years.

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.

Dried peas

  • In Japan, in-quota tariffs of 10% will be eliminated upon the Agreement’s entry into force, while over-quota tariffs of 354 yen/kg will be eliminated within 10 years.
  • In Vietnam, tariffs of up to 10% will be eliminated within two years.

Dried beans

  • In Japan, in-quota tariffs of 10% will be eliminated upon the Agreement’s entry into force.
  • In Vietnam, tariffs of 10% in Vietnam will be eliminated within two years.
Agricultural equipment products

Harvesters, mowers and other agricultural equipment

  • In Vietnam, tariffs of up to 5% will be eliminated within three years.
  • In Malaysia, tariffs of up to 30% will be eliminated within two years.
  • 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.

Miscellaneous agricultural machinery

  • In Vietnam, tariffs of up to 20% will be eliminated within three years.
  • In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s 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 the Agreement’s entry into force.
  • In Brunei, tariffs of up to 20% will be eliminated upon the Agreement’s entry into force.

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.

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.

Opening new markets for exports of services from Saskatchewan to Asia-Pacific countries

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

Saskatchewan 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 Saskatchewan 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 Saskatchewan 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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