The Trans-Pacific Partnership: What You Need To Know
October 8, 2015—On Monday, October 5th, the Government of Canada announced the conclusion of negotiations on the Trans-Pacific Partnership (TPP). Here is what you need to know:What is the Trans-Pacific Partnership?
The Trans-Pacific Partnership is a free trade agreement among Canada and 11 other nations located around the Pacific: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. Together, TPP members represent 800 million people and a combined GDP of $28.5 trillion, or about 40 percent of global economic output.
The TPP is the most comprehensive trade agreement in the world and includes chapters related to market access, technical barriers to trade, rules of origin, e-commerce, labour, environment, dispute settlement, among other subjects.
On the whole, the TPP will provide Ontario businesses with increased market access opportunities to economies with historically high trade barriers, like Japan, and rapidly growing economies like Malaysia and Vietnam. Tariffs on imports for many products (e.g. industrial goods, agriculture, fish and seafood, forestry, etc.) will be eliminated or reduced immediately or soon after the TPP comes into force.
The TPP also contains provisions that require member nations to commit to basic labour and environmental standards. Some TPP participants will be undertaking these commitments for the first time.
Rule of origin (i.e. domestic content rules) provision has been reduced from NAFTA levels
Canadian tariff on foreign automotive vehicle imports will be eliminated
Agriculture and Agri-food
Supply-managed markets are opened, but farmers provided with compensation
Tariffs on food imports are being dramatically cut
Under the TPP, there will be no change for the treatment of biologics in Canada
TPP levels the playing field between state-owned and private businesses
The full text of the TPP has not yet been released–parties are working to have that document available publicly as soon as possible. The TPP still needs to be approved by the individual legislatures in all TPP-member countries.
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