When Canada and 11 other countries signed the Trans-Pacific Partnership (TPP) agreement, they created the world’s largest trade zone, spanning four continents and generating 40 per cent of the world’s economic output.
The objective is to spur trade by reducing or eliminating tariffs imposed by the participating countries, which include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
New trade opportunities now exist for many Canadian exporters, including beef, forestry and mining companies. However, some other industry sectors, including dairy producers, automobile makers and car parts manufacturers, will be exposed to increased competition from offshore companies. Increased international trade typically results in lower prices, which will be good news for Canadian consumers.
However, final approval of the agreement is not certain as the deal still needs to be ratified in each member country, including Canada, where the newly elected Liberals want to review the details of TPP before ratification.
For more information, contact Brian Rowe, General Manager – Customs Consulting Services.