Benefits of the CPTPP for British Columbia
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trading block that represents 580 million people with a combined gross domestic product of CAD $19 trillion – a full 15.6% of global GDP. Through the CPTPP, Canada has preferential access to more than half a billion consumers in the world’s most dynamic and fast-growing market – a move that will strengthen Canadian businesses, grow the economy, and create more well-paying jobs for middle class Canadians.
Main advantages for British Columbia
- Tariff Elimination: The CPTPP will provide new opportunities for British Columbia exporters by eliminating tariffs on almost all of the province’s key exports, including:
- Agricultural and agri-food (pork, ice wine and fruits (blueberries, cranberries and cherries);
- Fish and seafood (salmon, herring roe, sea urchin and roes);
- Industrial goods (metals and minerals, chemicals and plastics)
- Forestry products and value-added wood products (lumber, oriented strand board, newsprint, uncoated paper and paperboard).
- Services Exports: The CPTPP will provide more transparent and predictable access for services suppliers in key sectors, including professional, environmental, and research and development services.
- Temporary entry: The CPTPP will provide improved market access commitments for temporary entry of highly 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.
British Columbia – Indo-Pacific trade snapshot
Top British Columbia Merchandise Exports to CPTPP Markets (2015-2017 average)
Text version
Top British Columbia Merchandise Exports to CPTPP Markets (2015-2017 average)
- Total: $5,093,216,770
- Metals and Minerals: $2,599,391,159
- Forestry: $1,479,252,352
- Agricultural Products: $185,056,569
- Industrial Machinery: $157,386,307
- Fish and Seafood: $124,168,095
- Chemicals and Plastics: $122,542,675
Opening new markets for exports from British Columbia to the Indo-Pacific countries
The elimination of tariffs will help make exports from British Columbia’s exports more price-competitive in CPTPP markets. Examples of British Columbia products that will benefit from improved access include:
Metals and minerals
Copper:
- In Japan, tariffs of up to 3%or 500 yen/kg, whichever is less, will be eliminated within 10 years;
- In Malaysia, tariffs of up to 25% will be eliminated within five years;
Aluminum:
- In Japan, tariffs of up to 7.5% will be eliminated upon entry into force;
- In Malaysia, tariffs up to 30% will be eliminated within 10 years;
- In Vietnam, tariffs of up to 27% will be eliminated within three years.
- In Australia, tariffs of up to 5% will be eliminated upon entry into force
Forest products and value-added wood products
Lumber:
- In Japan, tariffs of up to 6% will be eliminated within 15 years.
- In Australia, tariffs of up to 5% will be eliminated upon entry into force.
- In Brunei, tariffs of up to 20% 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, tariffs of 20% will be eliminated upon entry into force.
- In Brunei, tariffs of 20% will be eliminated upon entry into force.
- In Australia, tariffs of 5% will be eliminated upon entry into force.
- In New Zealand, tariffs of 5% will be eliminated upon entry into force.
Newsprint:
- In Vietnam, tariffs of 25%will be eliminated within three years.
- In Malaysia, tariffs of 10%will be eliminated within five years.
- In Australia, tariffs of 5% will be eliminated upon entry into force.
Uncoated paper and paperboard:
- In Vietnam, tariffs of up to 27% will be eliminated within three years.
- In Malaysia, tariffs of up to 25% will be eliminated within 10 years.
- In Australia, tariffs of up to 5% will be eliminated upon entry into force.
Agriculture and agri-food
Fresh and frozen blueberries:
- In Japan, tariffs of up to 9.6% on frozen blueberries and up to 6 percent on fresh blueberries will be eliminated upon entry into force.
- In Vietnam, tariffs of 30% on frozen blueberries will be eliminated within two years and tariffs of 15% on fresh blueberries will be eliminated upon entry into force.
- In Malaysia, tariffs of 5% on frozen and fresh blueberries will be eliminated upon entry into force.
Fresh, frozen and sweetened dried cranberries:
- In Japan, tariffs of up to 11% will be eliminated upon entry into force.
- In Vietnam, tariffs of up to 30% will be eliminated within five years.
- In Malaysia, tariffs of 5% will be eliminated upon entry into force.
Fresh and frozen cherries:
- In Japan, tariffs of up to 13.8% will be eliminated within five years.
- In Vietnam, tariffs of up to 30% will be eliminated within two years.
- In Malaysia, tariffs of 5% will be eliminated upon entry into force.
Pork:
- In Japan, tariffs of up to 20% on pork products, including sausages, which are subject to the gate price system, will be eliminated within 10 years.
- In Vietnam, tariffs of up to 27% on fresh/chilled and frozen pork will be eliminated within nine years.
Fish and seafood
Fresh, chilled or frozen salmon (including fillets):
- In Japan, tariffs of up to 3.5% will be eliminated within 10 years.
- In Vietnam, tariffs of up to 18% will be eliminated upon entry into force.
Prepared or preserved salmon (including smoked salmon):
- In Japan, tariffs of up to 10.5% will be eliminated upon entry into force.
- In Vietnam, tariffs of up to 34% will be eliminated within seven years.
Herring roe:
- In Japan, tariffs of up to 11% will be eliminated upon entry into force
- In Vietnam, tariffs of up to 24% on most herring roe will be eliminated upon entry into force, while tariffs of up to 34% on certain prepared herring roe will be eliminated within three years.
- In Malaysia, tariffs of up to 8% will be eliminated upon entry into force.
Live, fresh or chilled sea urchin and roe:
- In Japan, tariffs of up to 7% will be eliminated upon entry into force.
Chemicals and plastics products
Sodium chlorate:
- In Japan, tariffs of up to 3.3% will be eliminated upon entry into force.
Opening new markets for export of services from British Columbia to Indo-Pacific countries
The CPTPP provides British Columbia services suppliers with greater predictability and enhanced market access across a broad range of sectors, including:
- professional services (e.g. legal, engineering and architectural) and transport services in all ten CPTPP exports markets
- computer-related services in Australia, Chile, Malaysia and Mexico
- research and development in Australia, Japan, Chile, Malaysia, New Zealand, Singapore and Vietnam
- construction services in Australia, Mexico, New Zealand and Vietnam
- education services in Malaysia, New Zealand, Singapore and Vietnam
- environmental services in Australia, Brunei, Japan, Mexico, Peru, Malaysia, New Zealand, and Vietnam
- mining-related services in Chile, Brunei, Malaysia and Singapore
- services incidental to energy distribution in Chile, Brunei, Malaysia, New Zealand and Singapore.
British Columbia telecommunications services providers can expect the regulatory authorities of CPTPP country to act impartially and in a transparent fashion.
British Columbia enterprises that engage in electronic commerce as a means of trade will benefit from trade rules such as the prohibition on applying customs duties to content transmitted electronically, and ensuring the protection of online personal information.
Improving temporary entry for business persons
The CPTPP will improve labour mobility for highly- skilled business persons, making it easier for professionals from British Columbia to provide expertise in CPTPP markets. In particular, the CPTPP facilitates the temporary entry of Canadian business visitors, intra-corporate transferees, investors, highly-skilled professionals, technicians, as well as the spouses of some of these Canadian business persons—contributing to greater certainty and predictability for prospective business entrants.
Reducing non-tariff barriers
The CPTPP includes enforceable provisions to help secure market access gains for Canadian exporters so that they are not undermined by unnecessary measures that restrict trade, such as in the areas of technical barriers to trade and sanitary and phytosanitary measures. As a result, the CPTPP will create a more predictable trading environment for Canadian exporters, without compromising the ability of the government to protect the health and safety of Canadians or safeguard animal and plant health.
Expanding access to government procurement
The CPTPP establishes clear rules to ensure that Canadian suppliers of goods, services and construction services have access to open, fair and transparent processes when bidding for procurement contracts in CPTPP countries. The Agreement expands government procurement commitments with existing partners, including Chile and Peru, and secures new access to procurement opportunities in Australia, Brunei, Malaysia and Vietnam.
Facilitating two-way investment between British Columbia and the Indo-Pacific
The CPTPP’s investment rules will provide greater stability and protection for investors, while preserving the rights of the federal and provincial governments to legislate and regulate in the public interest. In areas such as energy, mining, manufacturing, financial services and professional services, Canadian investors will enjoy transparent and predictable access to CPTPP markets. Strong rules will ensure that investors from Canada are treated in a fair, equitable and non-discriminatory manner, allowing them to compete on an equal footing with other investors in CPTPP countries. Canadian investors will also have access to an investor-state dispute settlement mechanism that is fair and transparent.
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