In the midst of trade tensions with the U.S., many Canadians are greatly anticipating the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) coming into effect. The CPTPP is a free trade agreement between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
According to the Government of Canada, Once the CPTPP enters into force, it will be one of the largest free trade agreements in the world and will provide enhanced market access to key Asian markets (Gov. of Canada, n.d.). This is very important to Canadian businesses right now as NAFTA trade tensions are increasing barriers for exporters.
Currently, the house of commons has adjourned for the summer, with the plan to ratify this bill when they reconvene later this year. However, with the current trade barriers being implemented it would be very beneficial to get this trade agreement formalized as soon as possible (Pinkerton, Jul 19).
This will help open up markets for Canadian exporters, and lessen the blow that current tariffs and trade barriers have cast on Canadian businesses. According to Conservative Leader Andrew Scheer in a letter to Prime Minister Justin Trudeau,
“Given the importance of this bill to Canadian livelihoods, it is crucial to the public interest that Canada ratify the CPTPP as soon as possible. To that end, I urge your government to recall Parliament for an emergency summer session to debate and pass Bill C-79, and to do so without delay,” (Pinkerton, Jul 19).
In order for the CPTPP to come into effect 6 of the 11 countries participating must ratify the agreement domestically. Three countries, Japan, Mexico, and Singapore, have already ratified the agreement in their countries (Heppner, n.d.). Once it has been signed by the first 6, there will be a 60-day waiting period before the countries will be able to take advantage of the agreement.
This is why it is important for Canada to take the steps needed as soon as possible to formalize the agreement. Delaying this agreement puts Canada, and its trading partners, at a huge disadvantage. Opening up our markets and allowing more free trade will help our economy grow, and withstand current trade difficulties.
This new trade agreement will come with a lot of benefits for all the countries involved. If you are looking to understand how this trade agreement will be able to benefit you and your business you can visit the Government of Canada CPTPP webpage: https://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/index.aspx?lang=eng
Sources:
Citations
Pinkerton, Jul 19. Retrieved from URL https://ipolitics.ca/2018/07/19/scheer-urges-trudeau-to-recall-parliament-to-ratify-cptpp/
Heppner, n.d. Retrieved from URL https://www.realagriculture.com/2018/05/cptpp-text-tabled-in-the-house-of-commons/