On October 25, 2018, the Minister of International Trade Diversification announced that the Government of Canada received royal assent to Bill C-79, the act to implement the CPTPP.
The CPTPP is a free trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Canada is the fifth country to ratify the CPTPP, meaning that Canada will be among the first six CPTPP Parties to enjoy the benefits of this landmark Agreement upon its entry into force. Mexico, Japan, Singapore and New Zealand are the other countries that have ratified the trade agreement. The CPTPP will come into force 60 days after the sixth country ratifies it. With the CPTPP, Canada will be the only G7 country with trade agreements with all other members of the G7.
Once the CPTPP is implemented, 99% of Canada’s current exports to CPTPP markets will enter tariff-free. By opening new markets to Canadian goods and services, the CPTPP will benefit Canadians from coast to coast to coast, across a variety of sectors, from farmers to factory workers, start-ups and small businesses, creating more jobs and providing lower prices for consumers.
Here are some Facts on the CPTPP:
- The CPTPP represents a trading bloc of 11 countries with almost 500 million consumers and a combined economy worth $13.5 trillion.
- Canada’s merchandise trade with its CPTPP partners was over $95 billion in 2017.
- Upon entry into force, 86% of CPTPP countries’ tariff lines will become duty-free.
- The CPTPP was signed on March 8, 2018, in Santiago, Chile. Mexico, Japan, Singapore and New Zealand have since ratified the agreement through their respective processes.
- The CPTPP will enter into force 60 days after six of the signatories complete their domestic procedures and deposit their notice of ratification to the CPTPP Depositary (New Zealand).
- Following royal assent, Canada will work expeditiously to complete the necessary domestic procedures to fully implement the CPTPP.