While the original name of this agreement was the ‘Trans Pacific Partnership’, it never actually entered into force as such, as the US withdrew its signature in January of 2017. However, the remaining nations formed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

This post is a brief summary of what that deal entails. 

The Scope

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership has created a free-trade agreement among 12 nations around the Pacific, making it one of the world's largest agreements. The countries within its scope account for around 580 million consumers and 15% of the world's economic output. 

The Countries

The 12 countries in the CPTPP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam. 

The Deal

CPTPP works to eliminate most tariffs in its massive region and, since its ratification, has lowered trade barriers to goods and services across the Asia-Pacific region.  

Tariffs and other barriers faced by a wide range of Canadian products from various sectors have been cut; these sectors include agriculture and agri-food, fish and seafood, forestry and value-added wood products, metals and mining, and manufactured industrial goods. This agreement represents an incredible opportunity for businesses looking to expand to the Asia-Pacific region.

It also goes beyond simple trade, adding improved access in areas such as finance, professional services, architecture, engineering, research and development, environmental efforts, construction and transportation.

CPTPP countries include some of Canada's largest importers of agriculture and agri-food products, such as Japan and Mexico, as well as emerging countries that have strong economic growth such as Vietnam, Singapore and Malaysia.

Benefits By Sectors

• Agricultural and Agri-food Products
• Fish and Seafood
• Forestry and Value-added Wood Products
• Services and Financial Services
• Industrial Goods and Consumer Products

Quick Facts

• Trade is equivalent to more than 60 percent of Canada's annual gross domestic product (GDP), with one in five Canadian jobs linked directly to exports.
• Twelve countries make up the CPTPP: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam.
• The CPTPP membership represents a market of nearly 580-600 million people and a combined GDP of $15-17 trillion.
• CPTPP countries include some of the fastest-growing economies in the world, and this is expected to continue to be the case.
• The Asia-Pacific region is expected to represent two-thirds of the world’s middle class by 2030 and one-half of global GDP by 2050.
• Canada remains one of the only G7 countries with free trade access to the Americas, 

What We Can Do For You

PCB can help you and your business take full advantage of the CPTPP. We can help you export your goods to the countries it covers and ensure you are making the most of the agreement's provisions. 

PCB’s Free Trade Agreement Review can help you make the most of Canada’s position in this and all its free trade agreements. From determining if the CPTPP is right for you or helping you qualify, we can help set your business up for success abroad. When you’re ready, contact our team to get started!

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