October 5, 2015
– Canada, along with eleven other major Pacific and Asian nations, have finalized negotiations on the Trans-Pacific Partnership (TPP). This is a monumental move in international trade as ratification and implementation of this Agreement intends to eliminate or drastically reduce tariff and non-tariff barriers for the trade of goods and services between member nations.
In the Agreement, Canadian exporters will gain preferential access to Asia-Pacific markets in a number of sectors, including agriculture and agri-food, fish and seafood, forestry and value-added wood products, metals and mining, and manufactured industrial goods. Additionally, the Agreement will provide more predictable market access for cross-border trade in select service areas such as architecture and engineering, research and development, environmental, construction and transportation.
The reduced trade barriers outlined in the TPP may, however, have negative consequences for Canadian domestic automotive and agriculture sectors; in particular Canada’s protected dairy sector, which may soon face more fierce competition from foreign suppliers.
Although a consensus among member nations has been reached, the TPP must still be approved in national legislatures prior to implementation, with mid-2016 as the targeted date.
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