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Summary of the Final GBA Plus of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Contents

Introduction

On February 1, 2021, the United Kingdom (U.K.) became the first economy to submit a formal application to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Following several rounds of discussions on the U.K.’s compliance with the CPTPP’s provisions, and negotiation of the U.K.’s market access offers and non-conforming measures, on March 30, 2023, CPTPP Parties and the U.K. announced the substantial conclusion of negotiations for the U.K.’s accession to the CPTPP. As the first accession applicant, this marks an important chapter in the development of the CPTPP and has prompted the Government of Canada to publish a summary of the ex-post Gender-based Analysis Plus (GBA Plus) of the CPTPP.

This report summarizes the main outcomes of a longer internal analysis that was conducted upon entry into force of the CPTPP and highlights the effects that this free trade agreement (FTA) may have on the diverse Canadian population. It seeks to contribute to a better understanding of the potential effects and opportunities provided through the CPTPP in Canada from a GBA Plus lens.

Background

The CPTPP is a free trade agreement between Canada and 10 other countries in the Indo-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The CPTPP entered into force on December 30, 2018 between the first six countries to ratify the agreement (Canada, Australia, Japan, Mexico, New Zealand, and Singapore); for Vietnam on January 14, 2019; for Peru on September 19, 2021; for Malaysia on November 29, 2022; and for Chile on February 21, 2023.

On May 13, 2023 Brunei notified CPTPP parties of its domestic ratification of the agreement, and the CPTPP will enter into force for Brunei on July 12, 2023. With all original signatories having ratified the Agreement, the CPTPP is one of the largest trading blocs in the world. The combined total gross domestic product (GDP) among the eleven nations of the CPTPP is $13.5 trillion. The implemented Agreement continues to generate significant economic benefits for Canada, providing Canada with enhanced access to Indo-Pacific markets, including Japan (the world’s third-largest economy) and Vietnam. It is the successor agreement to the Trans-Pacific Partnership (TPP) and was signed by all of the TPP members except the United States (U.S.).

The TPP was originally concluded on October 5, 2015, by 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam) and was signed by all 12 Parties on February 4, 2016. On January 30, 2017, the U.S. notified TPP signatories of its intention to not ratify the TPP, a decision which, because of the way the Agreement was drafted, meant that the TPP could not come into force for any of the signatories. Following the U.S. decision to not ratify the TPP, the remaining 11 members held discussions for a new agreement.

From September 30, 2017, to October 30, 2017, the Government of Canada undertook public consultations to seek views on a potential new TPP Agreement, which was generally welcomed by Canadians.

On November 10, 2017, in Vietnam, the Parties agreed on the core elements of a new CPTPP Agreement, and on January 23, 2018, the CPTPP Parties concluded negotiations. The CPTPP incorporates, by reference, the provisions of the original TPP Agreement with the exception of a number of provisions pertaining mainly to intellectual property and investor-state dispute settlement, for which application was suspended when the CPTPP came into force. These provisions will be suspended until all the parties decide otherwise.

Purpose of the GBA Plus

In January 2018, the Trade Policy and Negotiations Branch at Global Affairs Canada appointed a gender focal point and established a GBA Plus action plan, the implementation of which positioned the department to deliver on Canada’s inclusive approach to trade and other government priorities. An ex post GBA PlusFootnote 1 is meant to inform the implementation of an agreement and the potential development or modification of government policies and programs to mitigate risks or enhance opportunities.

GBA Plus is an analytical tool implemented by the federal government to support the development of gender responsive and inclusive policies, programs, and other initiatives. GBA Plus is a process for understanding who is impacted by the issue being addressed by the initiative; identifying how the initiative could be tailored to meet diverse needs of the people most impacted; and anticipating and mitigating any barriers to accessing or benefitting from the initiative.

As such, this report will examine the effects of the CPTPP on women, men, and Indigenous Peoples in Canada, as well as the intersectional identities (e.g., Indigenous women). Other groups that can also be included in a GBA Plus include youth; lesbian, gay, bisexual, transgendered, queer and two-spirit (LGBTQ2) individualsFootnote 2; visible minorities; immigrants; people with disabilities; different socio-economic groups, etc. In conducting this report, the lead negotiators of each chapter (See Annex A for a complete list of CPTPP chapters) were asked to review their chapter for its gender responsiveness and inclusivity effects.

Economic Impact Assessment

The Government of Canada published an assessment of the economic impact of Canada’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership analysing the potential economic impact of the CPTPP for Canada in February 2018. This section highlights the main outcomes of that impact assessment.

It was estimated that the CPTPP would provide Canada increased market access and greater regional economic integration with Indo-Pacific countries. The CPTPP was projected to boost Canada’s GDP by $4.2 billion in the longer term (i.e., by 2040). This was significantly higher than the GDP gains of $3.4 billion that were projected under the TPP that included the United States. This projected increase in GDP was driven by increases in exports of goods and services, and by increases in investment. In addition, under the CPTPP, total Canadian exports to other CPTPP countries were projected to increase by $2.7 billion or 4.2%, compared to export gains of $1.5 billion under the TPP.

The increases in exports were expected to be driven primarily by new preferential access for Canadian businesses to the markets in which Canada did not already have an FTA, such as Japan, Vietnam, Malaysia, New Zealand and Australia. The gains for Canada were expected to cover a broad range of sectors across the Canadian economy, including some agricultural products such as pork and beef, wood products, machinery and equipment, and transportation equipment. The projected impacts on the automotive sector were slight, with a small increase in output and exports. In addition to the increase in exports, investment in Canada was projected to increase by $810 million, as a result of both greater foreign direct investment as well as more investment by domestic businesses.

In the fifth year since entry into force, total merchandise trade between Canada and all CPTPP partners was $123.6B in 2022, growing by 19.4% as compared to 2021. Canada’s merchandise exports to CPTPP partners reached a record high of $37.4 billion, rising 21.9% in 2022. Canadian merchandise imports also experienced strong growth over this period, rising 18.4% to reach $86.1 billion in 2022.

Since the CPTPP’s entry into force for Canada in 2018, tariff liberalization on agricultural goods traded between CPTPP Parties has created new export and import opportunities for large segments of the Canadian agriculture and agri-food sector. According to Statistics Canada, Canada’s agriculture and agri-food exports to CPTPP countries were valued at $10.4 billion in 2022, which was an increase of 28.5% over 2018 ($8.1 billion). Due to the demographic composition of the agricultural sector, increased exports of certain products, such as beef and pork, would provide greater direct employment opportunities for women and Indigenous farm operators who account for a growing proportion of overall employment in the agriculture sectorFootnote 3 and visible minority groups in the food and beverage manufacturing sector.Footnote 4 Export growth in the agricultural sector would also have a positive impact on rural employers, who tend to be positively impacted by growth in these sectors.Footnote 5 Canada has also provided limited market access to CPTPP members for dairy, poultry and egg products in the form of new tariff rate quotas (TRQs) which are being phased in over a period of 5 years with smaller growth over 13 additional years. Ongoing federal policy initiatives implemented in partnership with provincial and territorial governments aim to assist the sector in taking advantage of FTAs to grow trade while also increasing the sector’s diversity.

Chapter-by-Chapter GBA Plus

An internal GBA Plus of the Agreement was conducted following the CPTPP’s entry into force in 2019. This GBA Plus summary report highlights the main outcomes of this internal report.

For the purpose of this report, the analysis has been broken down into four groups of related chapters as outlined below:

  1. Goods-related
  2. Services and investment-related
  3. Inclusive Trade
  4. Horizontal issues

Group 1: Goods-related

Goods-related

The purpose of the goods-related chapters is to gain improved market access for Canadian-produced goods by eliminating trade restrictions and establishing clear and predictable rules for trade in goods. These chapters are intended to benefit Canadian exporters, producers and consumers.

They cover areas such as: tariffs; non-tariff barriers such as technical barriers to trade and sanitary and phyto-sanitary (SPS) measures that can inadvertently impede market access; and trade facilitation measures. The goods-related chapters do not include any gender specific provisions.

The obligations in the National Treatment and Market Access for Goods (NTMA) Chapter, including its associated annexes and appendixes, are comparable to NTMA obligations that Canada has included in its previous FTAs. Generally, the objective of NTMA obligations is to achieve enhanced market access for exports of Canadian goods to FTA partner countries by eliminating tariffs and creating a stable and predictable trading environment. The NTMA chapter does not contain any provisions specific to gender or traditionally under-represented groups and applies to all traders from all CPTPP Parties.

The Textiles and Apparel Chapter includes a provision related to handmade and folkloric goods which may be of greater benefit to women and Indigenous producers of textile and apparel goods. While Canada has similar provisions in its other FTAs, to date, Canadian producers have not taken advantage of these provisions.

The Customs and Trade Facilitation Chapter establishes commitments that are expected to lead to greater predictability, consistency and transparency in customs matters. Small and medium enterprises (SMEs), including those owned by women and other under-represented groups in the economy, may benefit from these provisions because they may serve to reduce fixed costs; these costs are a higher proportion of the operating budget of smaller companies.

The focus of the Regulatory Coherence Chapter is to promote enhanced transparency and good regulatory practices, with a view to improving governance while taking into account the legitimate policy objectives of each Party to the FTA. While the Chapter does not contain gender specific provisions, greater transparency and central coordination will provide Canadian exporters, including SMEs, with greater predictability regarding foreign regulatory frameworks and their enforcement. This is expected to have a positive impact on all traditionally under-represented groups.

Group 2: Services and investment-related

Services and investment-related

The purpose of the services and investment-related chapters is to help Canadian suppliers, services providers and investors secure market access and to ensure that the regulatory systems of the CPTPP Parties are predictable and transparent. The CPTPP offers Canadian investors improved protection, predictability, and transparency for their investments in fast-growing CPTPP markets. It requires the Parties to treat each others’ investors and their investments no less favourably than they treat any other investor in their territory; protects investors from government actions that are abusive, manifestly arbitrary, or in breach of due process; includes protections from expropriation without prompt and adequate compensation; and ensures investors are able to transfer capital into and out of the host country. It provides access to an independent international investor-state dispute settlement (ISDS) mechanism to ensure disputes are resolved in a fair and impartial manner.

Canada expects the CPTPP Investment Chapter to contribute to enhanced outbound and inbound investment. It is expected to facilitate outbound investment growth in sectors of Canadian expertise, particularly: aerospace, clean technology, life sciences, mining, oil and gas, information and communications technology, infrastructure, financial services, and professional services (e.g. legal, engineering). Indigenous Peoples are well represented in Canada’s natural resources sectors (e.g., mining, oil and gas) as workers and business owners and could benefit from the expected increased inward investment. Among these sectors, women are not notably represented relative to men, and as a result, the expected direct benefits to women in these sectors, including Indigenous women, are likely to be proportional to their participation in such sectors. The Agreement may also facilitate investment and partnership amongst Indigenous Peoples in various CPTPP countries.

The CPTPP Cross-Border Trade in Services (CBTS) Chapter includes General Agreement on Trade in Services (GATS) plus, meaning greater market access commitments than GATS, and FTA plus market access commitments from all Parties while allowing individual countries to maintain policy flexibility through exceptions. As in other FTAs, Canada has scheduled exceptions to preserve full regulatory flexibility with regard to Indigenous Peoples and other under-represented groups, among other exceptions, including the right to adopt or maintain preferences provided to these groups and to socially or economically disadvantaged minorities, under existing (e.g., Constitution Act) or future measures.

The CBTS Chapter provides commitments across a wide range of services sectors which can benefit a great variety of Canadians, including in service sectors where women and Indigenous Peoples have a relatively significant participation (i.e. wholesale and retail, educational, accommodation and food-related services, etc.), as well as in other sectors where their participation is important to achieve gender equality and inclusivity (e.g. professional, scientific and technical services). Therefore, CPTPP CBTS commitments have the potential to create new opportunities for Indigenous men, women, and youth in Canada.

The Financial Services Chapter includes market access commitments for cross-border trade and investment in financial services and a robust prudential carve-out that ensures the flexibility for regulators to take measures that protect investors, depositors, or policyholders, and safeguard the integrity and stability of the financial system. It does not target identity factors such as gender, race and mental or physical disability specifically. The Chapter does however allow Parties to adopt exceptions taken in the CBTS Chapter in the Financial Services context, including, for Canada, those that preserve Canada’s full regulatory flexibility with regard to Indigenous Peoples and other under-represented groups.

The Temporary Entry for Business Persons Chapter provides reciprocal coverage for the accompanying spouses of eligible business persons, thus allowing both spouses to work if they so choose. The term ‘’spouse’’ is not defined in the CPTPP and defers to each Party’s domestic regime (i.e. if a Party captures same-sex or common-law partners within its legal definition of a “spouse”). Canada recognizes that many households rely on dual incomes, and that providing work authorizations for spouses can promote family unification and economic independence for both spouses. In partnerships where both spouses are employed, this commitment may assist in the decision-making process should one spouse be offered a contract under the categories covered by the CPTPP.  

Although the Electronic Commerce Chapter does not contain gender responsive or inclusive specific provisions, Article 14.15, Cooperation, contains a cooperation commitment to work together to assist SMEs. An international study of micro, small, and medium-sized enterprises in 111 countries has found that while only 25% of traditional offline businesses are women-owned, women-owned online businesses represent 50% of the total online firms, so advancing opportunities in the digital sphere could provide greater benefits to women.Footnote 6 The provision relating to Article 14.8, Personal Information Protection, which commits the Parties to ensuring that they maintain a domestic legal framework that provides for the protection of personal information of electronic commerce users, may also be of particular importance to the LGBTQ2 community concerned about protecting their private lives from employer, state or public scrutiny.

The Government Procurement (GP) Chapter is comprised of two sections: procedural rules and market access commitments for each Party. The procedural rules establish the manner in which GP is conducted and are governed by four core obligations: non-discrimination, transparency, fairness and accountability. These rules support the primary objective of providing Canadian businesses—including SMEs, women and minority-owned businesses—with increased access to GP opportunities in CPTPP markets. While there are no specific gender-related provisions in the GP Chapter, there are carve-outs that allow for the development of domestic procurement policies that benefit under-represented groups. For example, an exception for measures adopted or maintained with respect to Indigenous Peoples gives Canada the flexibility to carry out set‑aside programs, such as the Procurement Strategy for Aboriginal Business (PSAB).

This exception also allows Canada to fulfil its constitutionally protected legal obligations under Comprehensive Land Claims Agreements (CLCAs). CLCAs are legal instruments containing contracting obligations that must be respected by the federal government and take precedence over other laws and policies in Canada. CLCAs (or Modern Treaties) are negotiated and implemented between Indigenous groups, Canada and the relevant province or territory to address areas in the country where Indigenous rights and titles have not been dealt with through other legal means. CLCAs include economic development provisions that provide set-asides to Indigenous Peoples within the settlement area for specific types of procurements.

Additionally, the GP Chapter includes a carve-out for preferences to benefit Canadian micro, small and medium enterprises (MSMEs) – including women-owned MSMEs – should Canada wish to develop and implement such programs.

The Intellectual Property (IP) Chapter establishes a transparent and predictable framework for the protection and enforcement of IP rights in the Indo-Pacific region. This objective is particularly important from a GBA Plus perspective, as key barriers to women’s engagement in the IP system include the accessibility of information on IP frameworks, as well as the need for IP education and awareness in respect of how IP rights can facilitate the commercialization of innovation and creation. While the IP Chapter does not include gender-specific provisions, it contains a number of provisions aimed at ensuring that Parties’ IP systems are transparent, with a view to providing IP right holders and applicants with information to protect their creations and inventions.

In addition, with respect to the issue of Indigenous traditional knowledge (or TK), the IP Chapter includes cooperation provisions in this area, which represents the first time that Canada has agreed to provisions on TK in the context of an IP Chapter. In particular, Article 18.16 of the IP Chapter provides that Parties shall endeavour to cooperate to “advance the understanding of issues connected with [TK] associated with genetic resources [known as Taka], and genetic resources”. As well, the cooperation provision encourages Parties to pursue quality patent examination in relation to patent applications that may involve TK, and provides an indicative list of actions that Parties may undertake to ensure quality in patent examination, such as use of databases or digital libraries containing TK.

Group 3: Inclusive Trade

Inclusive Trade

The labour and environment chapters have been part of Canada’s FTAs since the North American Free Trade Agreement (NAFTA, 1994). Their aim is to ensure that high levels of environmental protection are maintained and that international standards on labour conditions and rights are implemented effectively as trade is liberalized. In this regard, these provisions help to level the playing field among Parties with regard to environmental and labour standards. However, there is a large focus on CPTPP partner countries as inequalities persist in global labour markets, in respect of opportunities, treatment and outcomes.

By committing Parties to adopt and maintain a common set of international labour standards, the Labour Chapter is expected to help level the playing field, allowing Canadian workers and industry to compete on fairer grounds for global market shares. Although the labour provisions cover all workers, it is expected that the most vulnerable workers, such as women, are more likely to benefit from effective monitoring and implementation of the CPTPP labour provisions.

The obligations included in the CPTPP labour provisions, including those that help to promote gender equity and protect a diverse group of workers, are binding and enforceable through dispute settlement. Non-compliance with these obligations can lead to trade sanctions (or penalties), which are intended to have a deterrent effect on improper labour practices and violations in CPTPP countries.

The Environment Chapter of the CPTPP seeks to maintain and promote high levels of environmental protection and ensure that Parties do not lower their levels of environmental protection to promote trade or investment, recognizing that trade promotion and environmental protection should be mutually supportive. From a socio-economic point of view, the Chapter includes provisions encouraging corporate social responsibility, and provides opportunities for public participation and public submissions, including by under-represented groups.

The Environment chapter includes a carve-out related to Aboriginal harvesting of natural resources. This provision is likely to have a positive impact for Indigenous Peoples in Canada by reaffirming Canada’s ability to adopt or maintain measures it deems necessary to fulfill its legal obligations to Indigenous Peoples, including with regard to traditional harvesting practices. Article 20.13 recognises the importance of respecting and preserving the practices and traditional knowledge of Indigenous Peoples that contribute to biodiversity conservation.

The CPTPP includes dedicated chapters on Development and on Cooperation and Capacity-Building, which work hand in hand to boost the Parties’ development and secure strong economic futures. Specifically, the Development chapter contains dedicated provisions on development, which recognize the important role that open trade and investment and inclusive growth play in improving welfare, reducing poverty, raising living standards and creating new employment in support of development. For example, Article 23.4, Women and Economic Growth, specifically addresses and recognises that enhancing opportunities for women contributes to economic development. The CPTPP Development and the Cooperation and Capacity Building Chapters are in line with Canada’s support for the core principles and objectives of broad-based and sustainable economic development.

The Agreement includes three specific areas to be considered for collaborative work on development: (1) broad-based economic growth, including sustainable development, poverty reduction, and promotion of small businesses; (2) women and economic growth, including helping women build capacity and skills, enhancing women’s access to markets, obtaining technology and financing, establishing women’s leadership networks and identifying best practices in workplace flexibility; and (3) education, science and technology, research and innovation. Two or more Parties may undertake joint activities with a view to helping ensure that the benefits and opportunities of this agreement are more widely shared and contribute to the advancement of each Party’s development goals.

Additionally, both the Development Chapter and Cooperation and Capacity-Building Chapter establish dedicated committees (see Annex B for a full list of CPTPP committees) which are to meet regularly. The role of the committees is to facilitate the exchange of information and best practices and promote cooperative work related to the objectives of the Agreement and new opportunities that may arise. The cooperation and capacity-building activities promoted in the CPTPP will help unlock the economic potential of less-developed CPTPP member countries by creating opportunities for businesses, including SMEs, to gain access to the global market, while promoting high environmental and labour standards. 

The CPTPP includes a stand-alone SME Chapter. Although all Chapters of an FTA will benefit SMEs by providing new access to overseas markets, having a stand-alone SME Chapter highlights both the importance of SMEs to the Canadian economy and the challenges that SMEs face in accessing opportunities the CPTPP creates. SMEs make up the vast majority of Canadian businesses and employ more than 7.5 million Canadians, about 70% of the private sector labour force. The CPTPP further supports Canadian businesses by providing enhanced access to the dynamic Indo-Pacific region, directly benefiting Canada’s SMEs. Specifically, the Agreement provides access to new markets, customers and partnerships, resulting in stronger supply and production chains. The Agreement will make it easier and less costly for Canadian SMEs in a wide range of sectors to do business in the Indo-Pacific, including through streamlined customs and origin procedures and greater transparency in CPTPP member government regulations.

Complemented by commitments throughout the Agreement on market access, paperwork reduction, Internet access, trade facilitation, express delivery and others, each Party must establish a user-friendly website targeted at SMEs to provide easily accessible information on the Agreement and ways small firms can take advantage of it. Information on these sites are to include descriptions of the CPTPP provisions relevant to SMEs; regulations and procedures concerning intellectual property rights; foreign investment regulations; business registration procedures; employment regulations; and taxation information. Canada established its CPTPP SME website in January 2019. 

In addition, the CPTPP establishes an SME committee that will meet regularly to review how well the CPTPP is serving SMEs; to consider ways to further enhance its benefits; and to oversee cooperation or capacity building activities to support SMEs through export counselling, training programs, information sharing, trade finance and other activities. While the SME Chapter does not contain gender specific provisions, it does provide opportunity for the SME Committee to undertake activities targeted towards SMEs owned by underrepresented groups, including women, Indigenous Peoples, youth, racialized people and more.

For more Information on how women in Canada are benefitting from the CPTPP, please see Annex E for links to Trade and Gender Infographics on some CPTPP members.

The Inclusive Trade Action Group

When the CPTPP was signed in March 2018, Canada, Chile and New Zealand also signed the Joint Declaration on Fostering Progressive and Inclusive Trade. The Inclusive Trade Action Group (ITAG) was formally established in November 2018, on the margins of the Asia-Pacific Economic Cooperation (APEC) Leaders Summit. Costa Rica, Ecuador, and Mexico have since joined ITAG. The Group is comprised of likeminded countries that are building a community to advance inclusive trade and ensure that the benefits of trade and investment are more broadly shared including with women, Indigenous Peoples and SMEs. The Group’s priorities include Indigenous trade, labour, environment and climate change, and responsible business conduct. ITAG is cooperation-based and open for all economies to join.

A key initiative under the ITAG work plan was to establish a trade and gender instrument; the Global Trade and Gender Arrangement (GTAGA) was signed by ministers responsible for trade of Canada, Chile and New Zealand in August 2020. Currently, the Arrangement includes Canada, Chile, Colombia, Costa Rica, Ecuador, Mexico, New Zealand and Peru. GTAGA commits each Participant to advance an inclusive approach to trade, address the barriers that women face when participating in trade, and advance gender equality and women’s economic empowerment. GTAGA is cooperation-based and open for economies to join.  

Learn more about ITAG and the GTAGA.

Group 4: Horizontal issues

Horizontal issues

The chapters addressing horizontal issues cover such things as the operation of the Agreement and obligations that more indirectly support efforts to ensure Canadians can take advantage of the opportunities created by the Agreement. For those chapters that are administrative in nature, there are limited gender and inclusivity risks or opportunities to address.

The Institutional Chapters of FTAs set out the institutional and administrative provisions that apply to the entire Agreement. These provisions establish the framework by which the FTA will be interpreted, managed and implemented. The Preamble, Initial Provisions and General Definitions, Administrative and Institutional Provisions, Exceptions and General Provisions, and Final Provisions Chapters of an FTA provide clarity, specificity, and procedural rules to the administration of the Agreement. These chapters may indirectly influence positive GBA Plus outcomes, but are expected to have little stand-alone impact.

The primary objective of the anti-corruption provisions of the Transparency and Anti-Corruption Chapter is to require that Parties adopt or maintain criminal offences with respect to acts of bribery and corruption, including giving bribes to domestic and foreign public officials, and the solicitation/acceptance of bribes by public officials. While Canada-specific evidence is limited, it is recognized that corruption has differential impacts across various traditionally under-represented groups. It is generally accepted that corruption tends to exacerbate inequalities in terms of access to resources and enjoyment of rights.

The Transparency provisions of the CPTPP ensure that laws, regulations, procedures, and administrative rulings with respect to any matter covered by the Agreement are promptly published or otherwise made available. The provisions are intended to reduce barriers faced by individuals and businesses when engaging in commerce in other markets. Opaque government regulations, procedures, and rulings disproportionately affect small and medium-sized enterprises, for which the costs associated with dealing with unnecessary burdens is higher. Reducing these burdens is expected to therefore benefit SMEs and traditionally marginalized groups, as they have historically confronted key barriers to entry by opaque foreign government processes.

In addition to the cultural exceptions included in the various Chapters, Canada obtained the agreement of the other 10 CPTPP signatories, through side letters, to suspend specific provisions found in the original TPP Agreement, which could have limited Canada’s range of policy choices to promote cultural industries in the online environment. This is important because women, Indigenous Peoples and other under-represented groups are heavily represented in the cultural industries. 

Potential for future action

The outcomes of this GBA Plus are expected to inform Canada’s engagement in the ongoing work conducted under the CPTPP. A number of chapters call for the establishment of committees that allow the Parties to continue their engagement after implementation. In preparing for this engagement, Canadian officials have committed to ensuring that they will be informed by gender-responsive and inclusive considerations, such as ensuring that the voices and views of under-represented groups in the economy and trade are actively sought and heard during stakeholder consultations. Care will also be taken to ensure that consultations and engagements will take place in settings conducive to a respectful exchange of views. Canada is also committed to continuing its efforts to integrate gender-responsive and inclusive considerations into the work plans of the committees where relevant.

In evaluating potential actions that the Government of Canada may take to respond to challenges or opportunities identified by the GBA Plus, it is important to recognize the limitations of the solutions that may be found within free trade agreements. In some instances, the most appropriate mechanism for addressing risks or opportunities identified through the GBA Plus may be through domestic policies and programs (See Annex C) that fall within the responsibility of different federal government departments.  Additionally, any risks identified in this analysis may be mitigated through Canada’s gender equality laws (See Annex D).

As GBA Plus becomes further integrated into policy and planning following CPTPP’s entry into force, we expect that new avenues for addressing gender and inclusivity, both within FTAs and in domestic policies, will be identified.

Conclusion

Throughout the TPP and CPTPP negotiations, the Government of Canada held extensive public consultations to seek the views of Canadians on the potential Agreement. Additionally, the Government of Canada regularly engaged with a variety of partners and stakeholders, including the Provinces and Territories, Indigenous Peoples, municipal governments, business and non-business stakeholders. During negotiations, Canada was successful in its efforts to include in the CPTPP a number of gender responsive innovations that advance Canada’s goals of benefiting women, Indigenous Peoples and other traditionally under-represented groups in the population, including in the CBTS, Intellectual Property, Labour, and Environment chapters. In addition, the Agreement provides opportunities for the further integration of GBA Plus perspectives through the implementation of the Agreement and the work of committees and related instruments and by leveraging other cooperation provisions set out in the Agreement. These are expected to complement Canada’s ongoing efforts to enhance opportunities for women, Indigenous Peoples and other under-represented groups to participate in economic development and trade.

Annex A – CPTPP Chapters

Chapter 1: Initial Provisions and General Definitions - The Initial Provisions and General Definitions Chapter is comprised of two Sections- Section A: Initial Provisions, and Section B: General Definitions. Section A: Initial Provisions affirms the link between the CPTPP Agreement and other international agreements that CPTPP Parties have joined. Section B: General Definitions provides definitions for terms used in the Agreement.

Chapter 2: National Treatment and Market Access for Goods - The goal of NTMA obligations is to achieve increased and improved market access for exports of Canadian goods to FTA partner countries, to liberalize trade and create a stable and predictable trading environment, to the net benefit of the economy

Chapter 3: Rules of Origin and Origin Procedures - The rules of origin provisions set out the general requirements under which a good may be considered as originating in the CPTPP markets as well as other provisions that determine a good’s originating status. The origin procedures provisions establish the procedures used to administer the rules of origin and clarify the processes and obligations required for importers and exporters to take advantage of the reduced or free rates of duty and provide the customs authorities with an applicable methodology to ensure that only qualifying goods receive preferential tariff treatment under the FTA.

Chapter 4: Textiles and Apparel Goods - A standalone Chapter dedicated to the rules of origin for textiles and apparel goods. This Chapter includes rules of origin and origin procedures provisions, along with an annex of product-specific rules (PSRs) of origin for these goods and a short supply list that will allow for the use of certain non-originating yarns and fabrics not widely available in the CPTPP region.

Chapter 5: Customs Administration and Trade Facilitation - The Chapter’s objectives are to promote a transparent and predictable border environment and to increase efficiencies related to customs processes.

Chapter 6: Trade Remedies - Similar to Canada’s approach in recent FTAs, the CPTPP reaffirms World Trade Organization (WTO) rights and obligations for anti-dumping, countervailing and global safeguard measures under the relevant WTO Agreements. The CPTPP also reinforces certain international best practices related to transparency and procedural fairness in the conduct of trade remedy investigations.

Chapter 7: Sanitary and Phytosanitary Measures - Affirms and builds on the World Trade Organization Agreement on the Application of Sanitary and Phytosanitary Measures, which maintains each member country’s right to take SPS measures necessary to protect human, animal, or plant life or health, while facilitating trade. 

Chapter 8: Technical Barriers to Trade - Building on the WTO Technical Barriers to Trade Agreement, the CPTPP technical barriers to trade (TBT) provisions help ensure that unnecessary or discriminatory regulatory requirements do not erode key market access gains negotiated elsewhere in the Agreement.

Chapter 9: Investment - The Chapter offers Canadian investors improved protection, predictability, and transparency for their investments in fast-growing CPTPP markets.

Chapter 10: Cross-Border Trade in Services - Aims at promoting value-added services trade among CPTPP Parties and at supporting Canada’s transformation toward a knowledge-based economy with high quality and high-paying jobs for Canadians.

Chapter 11: Financial Services - Includes market access commitments for cross border trade and investment in financial services and a robust prudential carve-out that ensures the flexibility for regulators to take measures for prudential reasons.

Chapter 12: Temporary Entry for Business Persons – Supports and enhances opportunities for Canadian businesses through improved access for the movement of persons across borders which contributes to increased investment, innovation, economic efficiencies, job creation, and prosperity.

Chapter 13: Telecommunications - Seeks to enhance regulatory certainty for telecommunications service suppliers by including disciplines to ensure that telecommunications regulators act impartially, objectively, and in a transparent fashion.

Chapter 14: Electronic Commerce - Aims to facilitate the use of electronic commerce as a means of trade and builds on Canada’s commitments in its previous FTAs.

Chapter 15: Government Procurement - The Chapter is comprised of two sections: procedurals rules and market access commitments for each Party. The procedural rules establish the manner in which GP is conducted and are governed by four core obligations: non-discrimination, transparency, fairness and accountability. The market access expands on Canada’s commitments with existing FTA and WTO Agreement on Government Procurement (GPA) partners, including sub-central procurement commitments with Chile and Peru. Malaysia and Vietnam have undertaken GP commitments for the first time in any international FTA.

Chapter 16: Competition Policy - Promotes open and competitive markets, and helps ensure that the benefits of trade liberalization are not offset by anti-competitive business conduct.

Chapter 17: State-Owned Enterprises and Designated Monopolies - Covers entities that are engaged principally in commercial activities. To ensure a level playing field for private companies that compete with state-owned enterprises, the Chapter commits covered entities to non-discrimination obligations. The Chapter also requires that covered entities act in accordance with commercial considerations except where an entity is fulfilling its public mandate. Finally, the Chapter prohibits Parties from providing non-commercial assistance to an SOE that produces and sells goods in that other Party’s territory.  

Chapter 18: Intellectual Property - The CPTPP contains a comprehensive Chapter on IP rights protection and enforcement. The Chapter retains the original TPP outcome in IP in most areas, which builds on existing IP treaties such as the WTO Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS) and a number of treaties administered by WIPO. Following the withdrawal of the U.S. from the original TPP Agreement, CPTPP Parties agreed to suspend certain provisions under the new Agreement, with a view to reflecting Parties’ interests and priorities in rebalancing the IP outcome, and creating a regional standard on IP in the Indo-Pacific region.

Chapter 19: Labour - CPTPP Labour commitments protect and empower workers, including Canadians, by requiring partner countries to respect a common set of internationally recognized labour standards. However, there is a large focus on CPTPP partner countries as inequalities persist in global labour markets, in respect of opportunities, treatment and outcomes. 

Chapter 20: Environment - Seeks to maintain and promote high levels of environmental protection and ensure that Parties do not lower their levels of environmental protection to promote trade or investment, recognizing that trade promotion and environmental protection should be mutually supportive.

Chapter 21: Cooperation and Capacity Building - Promotes the acceleration of economic growth and development by encouraging activities that enhance a Party’s ability to take advantage of the FTA.

Chapter 22: Competitiveness and Business Facilitation - Creates formal mechanisms to assess the impact of the Agreement on regional competitiveness, economic integration and development of the free trade area.

Chapter 23: Development - Focuses on promoting and encouraging open trade and investment opportunities in order to support Parties’ development.

Chapter 24: Small and Medium-Sized Enterprises - Has two main components: 1) the sharing of information related to the CPTPP, including establishing a CPTPP website dedicated to SMEs by each Party; and 2) establishing an SME Committee to address SME-specific trade issues.

Chapter 25: Regulatory Coherence - Promotes enhanced transparency and good regulatory practices, with a view to improving governance while taking into account the legitimate policy objectives of each Party to the FTA.

Chapter 26: Transparency and Anti-Corruption - The CPTPP contains a two part-chapter on transparency and anti-corruption. The primary objective of the anti-corruption provisions of this chapter is to require that parties adopt or maintain criminal offences with respect to acts of bribery and corruption, including giving bribes to domestic and foreign public officials, and the solicitation/acceptance of bribes by public officials. The Transparency provisions of the CPTPP have been drafted to ensure that laws, regulations, procedures, and administrative rulings with respect to any matter covered by the Agreement are promptly published or otherwise made available.

Chapter 27: Administrative and Institutional Provisions - The administrative and institutional provisions set out how the Agreement will be managed and implemented by its parties. They establish the structure, function, processes and procedures of the Agreement’s commission, which will oversee the implementation and operation of the Agreement.

Chapter 28: Dispute Settlement - The CPTPP dispute resolution mechanism provides recourse to an impartial panel of experts, allowing governments to effectively settle trade issues between them. This ensures predictability and fairness in the resolution of these disputes.

Chapter 29: Exceptions and General Provisions – The exceptions provisions ensure that flexibilities are available to all CPTPP parties that guarantee full rights to regulate in the public interest, including for a party’s essential security interest and other public welfare reasons.

Chapter 30: Final Provisions – The final provisions set out the procedures related to the entry into force, accession and withdrawal from the Agreement.

Annex B – List of committees created under the Agreement

Annex C – Domestic laws, policies, programs

Canada recognizes that domestic and trade policies need to be coherent and complementary. Canada has many domestic laws, policies, and programs in place to support gender equality and economic empowerment for traditionally underrepresented groups. These laws, policies, and programs will serve to mitigate any potential negative effects of trade agreements, including the CPTPP. Similarly, positive opportunities granted by trade agreements can be leveraged and amplified by these existing programs and policies. Find more information on Canada's domestic gender equality laws.

Annex D – Women's economic empowerment programming in Canada

Canada's Trade Commissioner Service (TCS)—part of Global Affairs Canada—organizes and executes women-focused business delegations and trade missions to new markets including to CPTPP markets and prominent global trade shows and events, including those focused on providing opportunities for women-owned businesses through supplier diversity programs.

The Government of Canada's Women Entrepreneurship Strategy (WES) is a nearly $7 billion investment aimed at increasing women-owned businesses' access to the financing, talent, networks, and expertise they need to start up, scale up, and reach new markets. Under the WES, and through its over 20-year-old Business Women in International Trade (BWIT) initiative, the TCS received an additional $2 million per year to enhance export support services to women entrepreneurs. This funding helped establish a cadre of officers at TCS regional offices whose role is to support women-owned and women-led businesses.

The TCS network of offices in over 160 locations around the world, and six Regional Offices across Canada, helps Canadian companies including underrepresented groups (women, Indigenous Peoples, visible minorities, youth and members of the LGBTQ2 community) navigate the complexities of international markets, and make better business decisions for their international expansion.

The TCS's CanExport program provides over $33 million a year to Canadian SMEs, innovators, associations, and communities to help them diversify exports and expand their international footprint. In line with Canada's Export Diversification Strategy, the CanExport program seeks not only to diversify where Canada exports, but also to achieve trade that is more inclusive for all Canadians. To this end, CanExport's new dedicated Concierge Service for women and Indigenous entrepreneurs encourages applicants from those underrepresented groups in international trade to access its funding. The TCS Regional Offices deliver the Concierge Service by providing application guidance in an effort to make the CanExport program more accessible. CanExport also provides special considerations during the assessment of proposals to applicants from underrepresented groups in international trade (women, Indigenous peoples, visible minorities, LGBTQ2+, and youth).

The TCS is committed to offering business opportunities to underrepresented exporters, including women entrepreneurs, through funding and support programs that support their growth in global markets, and including through Canada's suite of 14 FTAs with 49 countries. FTAs ratified by Canada connect Canadian businesses to 1.5 billion customers worldwide and provide them with preferential access to diverse markets all over the world.

Annex E – Trade and Gender infographics for some CPTPP Members

Australia

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Japan

Malaysia

Mexico

New Zealand

Peru

Singapore

Vietnam

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