Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was designed to create a way for Asia-Pacific countries to have opportunities for trades and expansion. This free trade agreement also allows Canadian businesses to get ahead of global competition.

The CPTPP is currently in force with Canada and 6 other countries: Australia, Japan, Mexico, New Zealand, Singapore and Vietnam. Only once the agreement is fully implemented will Brunei, Chile, Malaysia and Peru join, making a total of 11 countries part of the agreement.

Let’s have a look at how the agreement can help Canadian businesses.

Why is the CPTPP Important?

The CPTPP is a high-standard free trade agreement that essentially covers all forms of trade and investment. Because of this, jobs are being created, the economy is growing stronger and it boosts Canada’s trading with important trading partners.

This agreement allows for aggressive market-access commitment in trade in goods, services investment, government procurement and labour mobility. A transparent, consistent and fair environment is created to do business in markets, due to the clear rules established by the agreement.

There are also feature chapters that are for the protection of the environment as well as labour rights. These are enforceable when resolving a dispute between parties. This also ensures that CPTPP members don’t detract from their commitments in the above areas to increase their own investment or trade.

The CPTPP is a high-standard free trade agreement that essentially covers all forms of trade and investment. Because of this, jobs are being created, the economy is growing stronger and it boosts Canada’s trading with important trading partners.

This agreement allows for aggressive market-access commitment in trade in goods, services investment, government procurement and labour mobility. A transparent, consistent and fair environment is created to do business in markets, due to the clear rules established by the agreement.

There are also feature chapters that are for the protection of the environment as well as labour rights. These are enforceable when resolving a dispute between parties. This also ensures that CPTPP members don’t detract from their commitments in the above areas to increase their own investment or trade.

What Areas of Trade Does the CPTPP Cover?

The following are covered by the free trade agreement:

• Trade in goods - tariffs are eliminated and reduces barriers for 98 percent of exports to CPTPP members countries.
• Rules of origin and origin procedures - Canadian exporters and producers have clear and favourable rules that determine which goods are considered originating, through CPTPP businesses can approach the customs administration in the market they are targeting and receive an advance ruling on the origin of their product.
• Customs and trade facilitation - the participating countries are keeping custom procedures simple and effective which reduces the processing time at the border. The goods are then easier to move between countries.
• Regulatory cooperation and conformity assessment - this minimizes unnecessary regulatory requirements and includes ways to make it easier for Canadians to do business in the Asia-Pacific.
• Government procurement - Canadian companies will receive the same treatment as domestic suppliers when bidding on government procurement opportunities in CPTPP member countries.
• Trade in services and labour mobility - many barriers such as quotas and labour market tests are eliminated, making it easier for Canadian businessmen to travel for business or to work temporarily in CPTPP participating countries.
• Investment - the agreement gives investors stability and protection for their investments and it ensures access to Asia-Pacific and Canadian markets.
• Intellectual property (IP) - creates a general standard for IP protection which provides Canadian creators and innovators with a transparent and predictable framework for operating in CPTPP participating countries.
• Labour and the environment - sets a general standard on labour and environment, and not to undermine them for commercial gain.
• Inclusive trade - Canada has an inclusive approach to trade with provisions to ensure the benefits of trade are more widely shared, including with under-represented groups such as women, SMEs and Indigenous peoples.

What Does the CPTPP Mean for Canadian Businesses?

Here’s how CPTPP helps businesses across Canada:

• Competitiveness - exporting becomes less expensive because of reduced tariffs and this gives Canadian businesses the ability to compete on price.
• Access to new clients - participating countries will have new preferential access to fundamental markets in Asia which include Japan, Vietnam and Malaysia.
• Market transparency and stability - the CPTPP gives Canadian services suppliers protection, predictability and transparency when conducting business in participating markets. Businesses are able to bid on government contracts and will be treated fairly as domestic bidders, as well as have access to all necessary information.
• Reduced barriers to trade - through this agreement, you’re able to send your personnel to work in partner countries or even bring key talent to Canada much easier.

CPTPP Benefits for Provinces and Territories

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership ensures that the provinces or territories have a competitive advantage over exports from other countries that aren’t part of the free trade agreement with the Asia-Pacific region.

Once the CPTPP is fully implemented, the tariffs will eliminate almost all Canadian exports to CPTPP markets and create better export conditions, including:

• reduced barriers to trade;
• increased access to government procurement; and
• consistent, transparent and predictable trade environment.

Below is a table of how the CPTPP will create opportunities in all sectors across each province or territory:

Move Your Business to Canada

You can reap the benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership by bringing your business to Canada or investing in an existing Canadian business. This can be done through the Start-Up Visa Program.

This program allows you to immigrate to Canada by starting a business anywhere in the country. The general eligibility criteria are that your business needs to be innovative, create jobs for Canadians and be able to compete internationally.