Benefits of the CPTPP for Nova Scotia
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 haspreferential 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 Nova Scotia
- Tariff elimination: The CPTPP will provide new opportunities for Nova Scotia exporters by eliminating tariffs on almost all of the province’s key exports, including:
- agricultural and agri-food products (blueberries and frozen vegetables)
- fish and seafood products (lobster, frozen snow crab, halibut and herring roe)
- forestry products and value-added wood products (uncoated paper and paperboard, and printed materials)
- industrial machinery (air and vacuum pumps and compressors, centrifuges, moulds and machinery for manufacturing rubber or plastics, pumps of liquids).
- 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 high-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.
Nova Scotia - Indo-Pacific trade snapshot
Top Nova Scotia Merchandise Exports to CPTPP Markets (2015-2017 average)
Text version
Top Nova Scotia Merchandise Exports to CPTPP Markets (2015-2017 average)
- Total: $207,687,912
- Fish and Seafood: $116,668,917
- Forestry: $24,633,207
- Agricultural Goods: $17,738,377
- Industrial Machinery: $12,939,401
- Miscellaneous: $8,629,297
- Metals and Minerals: $6,261,035
Opening new markets for exports from Nova Scotia to Indo-Pacific countries
The elimination of tariffs will help make exports from Nova Scotia more price-competitive in CPTPP markets. Examples of Nova Scotia products that will benefit from improved access include the following:
Fish and seafood products
Lobster
- In Japan, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In Malaysia, tariffs of up to 8% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of up to 34% on prepared lobster will be eliminated within three years.
Frozen snow crab
- In Japan, tariffs of 4% will be eliminated upon the Agreement’s entry into force.
Fresh, chilled and frozen halibut
- In Japan, tariffs of 3.5% will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of 18% will be eliminated upon the Agreement’s entry into force.
Herring roe
- In Japan, tariffs of up to 11% will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of up to 24% on most herring roe will be eliminated upon the Agreement’s 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 the Agreement’s entry into force.
Agricultural and agri-food products
Fresh and frozen blueberries
- In Japan, tariffs of 6% to 9.6% on frozen blueberries and tariffs of up to 6% on fresh blueberries will be eliminated upon the Agreement’s entry into force.
- In Vietnam, tariffs of up to 30% on frozen blueberries will be eliminated within two years; tariffs of up to 15% on fresh blueberries will be eliminated upon the Agreement’s entry into force.
- In Malaysia, tariffs of 5% on both frozen and fresh blueberries will be eliminated upon the Agreement’s entry into force.
Frozen vegetables
- In Japan, tariffs of up to 12% will be eliminated within five years (except for shiitake mushrooms, which will see reduced tariffs).
- In Vietnam, tariffs of up to 17% will be eliminated within four years.
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
Forestry products and value-added wood products
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 the Agreement’s entry into force.
Printed materials
- In Vietnam, tariffs of up to 25% will be eliminated upon the Agreement’s entry into force.
- In Malaysia, tariffs of up to 20% will be eliminated within five years.
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
Industrial machinery products
Air and vacuum pumps and compressors
- In Vietnam, tariffs of up to 31% will be eliminated within three years.
- In Malaysia, tariffs of up to 35% will be eliminated within five years.
- In Australia, tariffs of up to 5% will be eliminated within three years.
- In New Zealand, tariffs of up to 5% will be eliminated within seven years.
Centrifuges
- In Vietnam, tariffs of up to 22% will be eliminated within three years.
- In Malaysia, tariffs of up to 25% will be eliminated within five years.
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In Brunei, tariffs of up to 20% will be eliminated within seven years.
Moulds and machinery for manufacturing rubber or plastics
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
Pumps for liquids
- In Vietnam, tariffs of up to 24% will be eliminated within three years.
- In Malaysia, tariffs of up to 25% will be eliminated within five years.
- In Australia, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
- In New Zealand, tariffs of up to 5% will be eliminated upon the Agreement’s entry into force.
Opening new markets for exports of services from Nova Scotia to Indo-Pacific countries
The CPTPP provides Nova Scotia’s 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 10 CPTPP export markets
- computer-related services in Australia, Chile, Malaysia and Mexico
- research and development in Australia, Chile, Japan, 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, Malaysia, Mexico, New Zealand, Peru and Vietnam
- mining-related services in Brunei, Chile, Malaysia and Singapore
- services incidental to energy distribution in Brunei, Chile, Malaysia, New Zealand and Singapore.
Nova Scotia 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 people
The CPTPP will improve labour mobility for highly- skilled business persons, making it easier for professionals from Nova Scotia 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 exporters are not undermined by unnecessary measures that restrict trade, such as technical barriers to trade or 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 free trade agreement partners, including Chile and Peru, and secures new access to procurement opportunities in Australia, Brunei, Malaysia and Vietnam.
Facilitating two-way investment between Nova Scotia and the Indo-Pacific region
The CPTPP’s investment rules will provide greater stability and protection for investors, while preserving the rights of federal, provincial and territorial 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 a fair and transparent investor-state dispute settlement mechanism.
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