The Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) signed on December 30, 2018 will increase Canadian exporters’ access to some of the fastest-growing markets in the world in sectors from aerospace to infrastructure.
One of the largest free trade agreements ever negotiated, the CPTPP is now being made law at home by its 11 member countries, which, in addition to Canada, include Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Here are five key benefits the CPTTP will bring Canadian exporters:
More G2G opportunities. The CPTPP creates better and fairer rules for companies that bid on government contracts. Preexisting rules have been improved and completely new government procurement opportunities have been hammered out with Australia, Brunei, Malaysia and Vietnam. This provides an even stronger platform for CCC regional directors in or near member countries — for example, Lima, Peru and Bangkok, Thailand — to help Canadian companies win deals using our unique government to government contracting approach.
Preferential access to fast-growing economies. Combined, the CPTPP countries are home to nearly 500 million potential consumers and generate 13.5% of global GDP. Besides reducing and eliminating tariffs, the agreement eases restrictions on foreign competition and allows greater mobility for highly skilled workers. That will make it easier for Canadian firms to have experts on the ground, in-market.
Opportunities across every sector. The CPTPP will bring opportunities in every sector represented by CCC:
Civil Aerospace: Canadian aerospace exports to CPTPP countries are worth about $1 billion a year. This sector will benefit from the elimination of tariffs on engine parts and aircraft seats, streamlined customs procedures and transparent trade rules.
Cleantech, energy and the environment: Many CPTPP countries are committed to pursuing high levels of environmental protection. This will create new opportunities for Canadian exporters specializing in environment-enhancing technologies.
Construction and infrastructure: Canadian exporters do about $465 million worth of construction equipment sales every year. That is expected to increase as tariffs are phased out, and in some cases immediately eliminated, on industrial machinery and parts. This will result in greater access in all CPTPP countries and especially in those that are key for Canadian construction equipment—Australia, New Zealand and Malaysia.
Information and communications technology (ICT): Canadian ICT manufacturers export 80% of their products. Of those, 10% go to Asia-Pacific markets. Even further opportunities will be generated as more tariffs drop on ICT products and as ICT needs grow throughout the region and particularly in Japan, Australia and Malaysia.
Good for the economy
Increased trade activity from the CPTPP is expected to generate $4.2 billion in GDP here in Canada. That will contribute to an unprecedented positive business environment, stimulating job creation and prosperity in both domestic and export industries.
CCC has expanded its footprint in Asia in the past year precisely to support exporters in navigating the often-complex government procurement processes we find here.
Yvonne Chin, CCC Regional Director for Asia
“CCC’s experience and deep connections in Mexico and South America stand to help Canadian exporters take advantage of the increased opportunities that will be generated by the CPTPP.”
François Payeur, CCC Regional Director for Mexico and South America