The Trans-Pacific Partnership, the ambitious trade agreement that nearly happened, was to encompass 12 nations spanning four continents and 800 million people. But when U.S. President Trump pulled that country out of negotiations early last year, the 11 remaining members carried on, eventually forging the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which they formally agreed to this January.
Canada signed the deal last week in Santiago, Chile, taking it one step closer to implementation. At least six member countries are needed to ratify the deal before it will come into force – expected by the end of 2018 or early in 2019.
The CPTPP will reduce tariffs in countries that house nearly 500 million people and account for more than 13 per cent of the global economy: a total of about $10 trillion. It also seeks to reduce non-tariff measures – things like regulations can be create obstacles to trade. There are chapters that aim to harmonize these regulations, and others that aim to improve labour and environmental standards – among others. See the Government of Canada’s FAQs on the CPTPP for more.
CPTPP member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
What this means for Canadian businesses
Importers should consider the implications of CPTPP ratification now to determine how it will effect their business. By preferentially sourcing from CPTPP countries, for example, importers could enjoy significant savings in tariffs and smoother trade.
Our free trade professionals are available to help you keep up to date on this and other trade agreements that can benefit your business.
Information provided by: Canadian Customs Consulting Dept. - Cole International