Overview and benefits of the CPTPP

Strategic and economic benefits

Goods market access

Goods market access gains are most significant in Japan, as well as in Vietnam and Malaysia, countries with which Canada does not currently have free trade agreements (FTAs) and where tariffs remain high. Canadian exporters will benefit across a number of sectors.

Agriculture

Agriculture—A key export interest for Canada, particularly in the Japanese market. With the entry into force of the CPTPP, more than three quarters of Canada’s agriculture and agri-food products now benefit from immediate duty-free access.

  • Pork and beef
    • In Japan, tariffs for higher-priced pork cuts will be eliminated within 10 years, while tariffs on lower-priced pork cuts will be reduced within 10 years.
    • Tariffs on beef cuts and beef products will be reduced within 15 years, on par with competitors from other countries with FTAs in place with Japan (e.g. Australia).
  • Food wheat and barley
    • In Japan, Canada will have access to a Canada-specific quota for food wheat and a shared CPTPP-wide quota for food barley.
  • Canola oil—Tariffs in Japan and Vietnam will be eliminated within 5 years.
  • Immediate duty-free access
    • Exports of a number of other Canadian agricultural products will benefit from immediate duty-free access to various CPTPP countries. These products include canola seed, cranberries, blueberries and pet food.
Fish and seafood

Fish and seafood—Under CPTPP, 100% of tariffs will be eliminated for Canadian fish and seafood products. With the entry into force, the vast majority of these products is now entering duty-free, with remaining tariffs to be phased out over periods of up to 15 years.

  • Frozen snow crab
    • In Japan, tariffs of 4% will be eliminated upon entry into force.
  • Lobster (including processed)
    • In Japan and New Zealand, tariffs of up to 5% will be eliminated upon entry into force.
    • In Malaysia, tariffs of up to 8%, will be eliminated upon entry into force.
    • In Vietnam, tariffs of up to 34% will be eliminated within 3 years.
  • Fresh, chilled and frozen salmon (including fillets)
    • In Vietnam, tariffs of up to 18% will be eliminated upon entry into force.
    • In Japan, tariffs of up to 3.5% will be eliminated within 10 years.
  • Frozen fish fillets
    • In Vietnam, tariffs of 18% will be eliminated upon entry into force.
    • In Japan, tariffs of up to 10% will be eliminated within 10 years.
  • Oysters
    • In Japan, tariffs of up to 10.5% will be eliminated upon entry into force.
Forest products and value-added wood products

Forest products and value-added wood products—Under the CPTPP, tariffs will be eliminated on forestry and value-added wood products, which will create new opportunities in key markets such as Japan, Malaysia and Vietnam.

  • Lumber
    • In Japan, tariffs of up to 6% will be eliminated in 15 years.
    • In Australia and Brunei, tariffs of up to 5% and 20% respectively will be eliminated upon entry into force.
  • Oriented strand board
    • In Japan, tariffs of up to 6% will be eliminated within 15 years.
    • In Malaysia and Brunei, tariffs of up to 20% will be eliminated upon entry into force.
    • In Australia and New Zealand, tariffs of up to 5% will be eliminated upon entry into force.
  • Plywood and veneer
    • In Japan, tariffs of up to 10% will be eliminated within 15 years.
    • In Malaysia, tariffs of up to 40% will be eliminated within five years.
    • In Australia, tariffs of up to 5% will be eliminated upon entry into force.
    • In New Zealand, tariffs of 5% will be eliminated within seven years.
  • Carton boxes and packing containers
    • In Vietnam, tariffs of up to 24% will be eliminated within three years.
    • In Malaysia, tariffs of 25% will be eliminated within two years.
    • In Australia, tariffs of 5% will be eliminated upon entry into force.
Industrial goods

Industrial goods—Under CPTPP, 100% of tariffs will be eliminated on industrial goods and consumer products. The majority of Canadian industrial goods exported to CPTPP countries became duty-free immediately with entry into force, with most remaining tariffs on industrial goods to be eliminated over time.

  • Industrial machinery
    • In Vietnam, tariffs of up to 25% will be eliminated within eight years.
    • In Malaysia, tariffs of up to 30% will be eliminated within 10 years.
    • In Australia, tariffs of up to 5% will be eliminated within 4 years.
    • In New Zealand, tariffs of up to 5% will be eliminated within 7 years.
  • Chemicals and plastics
    • In Japan, tariffs of up to 6.5% or 25.60 yen/kg, whichever is less, will be eliminated within five years.
    • In Vietnam, tariffs of up to 31% will be eliminated within 10 years.
    • In Malaysia, tariffs of up to 50% will be eliminated within 10 years.
    • In Australia, tariffs of up to 10% will be eliminated within four years.
    • In New Zealand, tariffs of up to 10% will be eliminated within seven years.
  • Metals and minerals
    • In Japan, tariffs of up to 11.7% or 44 yen/kg, whichever is less, will be eliminated within 10 years.
    • In Vietnam, tariffs of up to 40% will be eliminated within 10 years, including in-quota tariffs for certain minerals.
    • In Malaysia, tariffs of up to 50% will be eliminated within 10 years.
    • In Australia, tariffs of up to 5% will be eliminated within four years.
    • In New Zealand, tariffs of up to 10% will be eliminated within seven years.
  • Cosmetics
    • In Japan, tariffs of up to 5.4% will be eliminated upon entry into force.
    • In Vietnam, tariffs of up to 30% will be eliminated within four years.
    • In Malaysia, tariffs of up to 20% will be eliminated within six years.
    • In Brunei, tariffs of up to 30% will be eliminated within seven years.
    • In Australia, tariffs of up to 5% will be eliminated upon entry into force.
    • In New Zealand, tariffs of up to 5% will be eliminated within seven years.

Provisions on technical barriers to trade (TBT), investment, intellectual property, sanitary and phytosanitary measures, and other areas in the CPTPP Agreement are now in force to secure the goods market access gained through tariff elimination. It will create a predictable trading environment for CPTPP members, giving manufacturers and exporters a leg-up in prospective markets.

The CPTPP Agreement includes annexes to the TBT chapter that address specific challenges faced by exporters of pharmaceuticals, medical devices, information and communications technology, and cosmetics, among others.

Automotive and auto parts

Tariff and non-tariff outcomes for the automotive and auto parts sectors include:

Services and investment

Canada secured commitments that go beyond those in the General Agreements on Trade in Services and Canada’s current FTAs with certain CPTPP members—using Canada’s traditional negative list approach with standstill and ratchet mechanisms to capture future liberalization.

Other sectors

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