According to Farm Credit Canada, our nation’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to increase our market share on food products currently in high demand within these markets, at the expense of U.S. and/or European exporters whose exports will be less competitively priced once CPTPP is ratified.
Canada exported foods worth US$19.1 billion (or 20% of the group’s total food exports) to the world in 2016. Fresh/chilled/frozen pork exports and canola oil were the biggest sellers.
But while Canada exports many foods that are neither bought in large amounts among CPTPP countries nor are growing quickly there, several Canadian food exports are in demand there – and that demand is growing.
Formerly the 12-country Trans-Pacific Partnership (TPP), the new deal now includes 11 trade partners (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam) representing 495 million people.
- Tariff elimination: The CPTPP will provide new opportunities for Ontario exporters by eliminating tariffs on almost all of the province’s key exports, including:
- agricultural and agri-food products (dried beans, wheat, dog and cat food, processed foods, and sugar and chocolate confectionery)
- industrial goods (chemicals and plastics, vehicles and automotive parts, industrial machinery, and information and communications technology)
- metals and minerals (nickel and diamonds).
- Services exports: The CPTPP will provide more transparent and predictable access for services suppliers in key sectors, including financial, professional, environmental, construction, 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.