Recent discussions of the Trans-Pacific Partnership (TPP) have focused on the United States’ role in the deal, and how President Barack Obama’s back-and-forth with Congress over the trade legislation will play out. However, many other countries – including Canada – also have substantial stakes in the partnership.
TPP opens a number of Pacific economies to Canadian businesses, giving it unique trade access to countries in both Europe and Asia, the Financial Post noted. It will provide Canadian businesses with opportunities in 11 countries in the Pacific region where trade agreements do not currently exist. With the North American Free Trade Agreement (NAFTA) over two decades old, and the recently negotiated Comprehensive Economic and Trade Agreement with the European Union (CETA) awaiting ratification, TPP would give Canadian business unrestricted access to consumers around the world. Canada would be the only country in the world with this sort of connection to both Pacific and European markets.
“TPP opens a number of Pacific economies to Canadian businesses.”
How TPP could boost Canadian business
The TPP, specifically, will present profitable new opportunities for businesses. The Peter G. Peterson Institute for International Economics found that if TPP were implemented, Canadian economic output would jump 0.5 percent by 2025. This would represent close to a $10 billion annual boost. Exports would likely grow 2.6 percent by 2025. Though the changes seem modest on a national level, they could prove significantly beneficial to businesses.
The agreement would remove tariffs on Canadian exports. Additionally, it would make moving goods and people across the border more affordable. And those two changes are just the tip of the iceberg. TPP would lift restrictions on investment, protect intellectual property rights and remove regulations that exclude Canadian goods and services. It would also help businesses in Canada get their products tested and approved for sale in new markets much faster.
Survey: Most Canadians don’t know what TPP is
Despite the substantial benefits TPP could offer to Canadian businesses, many people in the country have no idea the deal is being negotiated, or what the terms of the agreement are. A recent poll found that three in four Canadians are totally unaware their country is involved in free trade negotiations that would open up access to Pacific markets. Most respondents to the poll indicated they had never heard of TPP before being surveyed about the trade agreement. The deal, which would affect around one-third of global trade, is virtually nonexistent in the minds of the Canadian public.
Respondents to a survey were worried Canada would lose jobs to Pacific countries if TPP were implemented.Many of those surveyed did express concerns with the way the agreement is being negotiated, how it may affect Canadian manufacturing and the power it could give to global corporations. Similar to concerns floated ahead of NAFTA over 20 years ago, respondents were worried that manufacturing jobs would go to Pacific countries such as Vietnam, where companies can pay their employees much less for the same amount of labor.
Of the 1,002 people surveyed, 47 percent indicated they were worrying about jobs moving to countries like Vietnam, 5 percent believed TPP would bring Canada more jobs and 46 percent noted they did not know enough to answer.