The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. On December 30, 2018 the CPTPP entered into force among the first six countries to ratify the agreement – Canada, Australia, Japan, Mexico, New Zealand, and Singapore. On January 14, 2019, the CPTPP entered into force for Vietnam.
What does this mean for Canadian trade?
Once the agreement is fully implemented, Canada will have duty-free access to CPTPP countries for:
- 94% of Canadian agriculture and agri-food products exports;
- 99% of Canadian industrial products exports;
- 100% of Canadian fish and seafood products exports; and
- 100% of Canadian forest product exports.
The tariff elimination will happen over the next 7 to 12 years in accordance with the schedule.
More importantly, the ratification of the CPTPP will open new opportunities for imports and exports for Canada. This diversification in free trade is all too essential given the manner in which the USMCA was renegotiated and the uncertainty of present and future US tariffs.
DS Lawyers Canada, LLP
DS Customs & Trade team located in Paris, Brussels, Montreal, Toronto, Shanghai, Beijing, Cotonou, Dakar, Singapore and Vietnam is at your disposal to provide you with additional information.