Canada Joins the Trans-Pacific Partnership

Canada is now actively negotiating for a formal spot in what many expect will become the world’s most exciting modern trade agreement – the Trans-Pacific Partnership (TPP). This is good news for British Columbia; as the country’s Pacific province we have more to gain than most other provinces. The benefits of the TPP could include increased exports to Pacific Rim markets, a boost to the local tourism sector and the development of stronger business-business and people-people connections between our province and fast-growing Asian economies. This partnership, however, is about more than trade. It will set a course for how nations manage future economic relations with China and there will be challenges for Canada along the way.

Canada is now actively negotiating for a formal spot in what many expect will become the world’s most exciting modern trade agreement – the Trans-Pacific Partnership (TPP). This is good news for British Columbia; as the country’s Pacific province we have more to gain than most other provinces. The benefits of the TPP could include increased exports to Pacific Rim markets, a boost to the local tourism sector and the development of stronger business-business and people-people connections between our province and fast-growing Asian economies. This partnership, however, is about more than trade. It will set a course for how nations manage future economic relations with China and there will be challenges for Canada along the way.

This month’s Policy Perspectives provides some background on the proposed TPP, the reasons why Canada stands to benefit and the challenges facing countries at the table:

• The nine current TPP member countries represent a significant economic grouping generating almost 30 per cent of global economic output
• Currently, Asian countries receive only a small percentage of Canadian exports; as such, there is an opportunity for Canada to develop new offshore markets for its goods and services
• Countries with more advanced economies – including Canada - will want to ensure that intellectual property is protected from theft and other illegal uses
• The TPP negotiations will require Canada to address issues relating to the country’s longstanding regimes to protect the domestic dairy, poultry and egg production industries through “supply management”