Minister of Small Business, Export Promotion and International Trade appearance before the Special Committee on the COVID-19 Pandemic
2020-06-09
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Issue
Update on U.K. accession to the CPTPP and Japan-U.K. FTA negotiations
Responsive Lines
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- While there have not been any formal applications from any country to join the CPTPP, we welcome the UK's interest.
- We look forward to expanding the CPTPP to include new members that are able to meet the ambitious and high standard commitments of the Agreement.
- Canada will continue to watch Japan-U.K. FTA negotiations with interest to assess how it might impact Canadian interests.
Releasable Background
U.K. accession to the CPTPP:
The CPTPP is an ambitious and high-standard free trade agreement covering virtually all aspects of trade and investment. Canada's membership in the CPTPP signals our commitment to an effective, open, inclusive and rules-based global trading system.
The CPTPP entered into force for the first six countries to ratify the Agreement - Australia, Canada, Japan, Mexico, New Zealand, and Singapore - on December 30, 2018, and for Vietnam on January 14, 2019. For the remaining signatories (Brunei, Chile, Malaysia, and Peru), the CPTPP will enter into force 60 days after that country ratifies the Agreement. The CPTPP is designed to expand to include new economies. As of June 9, 2020, Thailand, the United Kingdom, South Korea and Taiwan have all expressed informal interest in accession, but none have formally applied.
Japan-U.K. FTA negotiations:
The U.K. is pursuing an ambitious agenda of trade negotiations, including launching new FTA negotiations with partners, such as the U.S., and seeking to roll over existing EU FTAs before the end of the Brexit transition period on December 31, 2020. Negotiations with Japan fall into the latter category. On May 19, 2020, the U.K. published its negotiating objectives for a U.K.-Japan FTA. Negotiations with Japan began on June 9, 2020, and are expected to continue over the following week. Areas of stated interest for both sides include digital trade, services and autos. The U.K. is expected to seek to build upon the Japan-EU Economic Partnership Agreement (in force since February 2019) as part of a stated interest by the U.K. in seeking to join the CPTPP.
Recent comments by Mexican President - Canadian Mining Companies
Issue
On June 9th, Mexican President sent a respectful message to the Canadian Ambassador suggesting that he convince Canadian companies not to go to international courts.
Responsive Lines
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- Canadian investors and companies make positive contributions to economic growth, job creation and sustainable local development in various sectors in Mexico, including mining and energy.
- While the Government of Canada does not comment on legal disputes, we remain interested in working with the Mexican government to ensure legal stability and a level-playing field, which are key to maintaining and attracting Canadian investment across sectors.
Releasable Background
On the morning of June 9th, 2020, during his daily press conference, the Mexican President Andres Manuel Lopez Obrador mentioned that there are some Canadian mining companies that want to go to international courts. He indicated that this was an opportunity to send a respectful message that the Canadian Ambassador convince them otherwise.
Canadian companies can decide to Submit a Claim ("Notice") under the provisions of Chapter 11 of North American Free Trade Agreement to the Government of Mexico to formally address conflicts with the Mexican tax authority, the Servicio de Administracion Tributaria (SAT).
The service of this Notice by a company on the Government of Mexico initiates a 90-day process for the Government of Mexico to enter into good faith negotiations with the company to resolve any dispute between the company and the SAT.
Mexico has a double taxation treaty with Canada.
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