G L O B A L T R A D E

Comprehensive and Progressive Agreement for

Trans-Pacific Partnership
The Benefits to CPTPP’s Member Countries
 What is CPTPP ?
01
Agenda An overview of CPTPP, its importance and implications for global
trade and growth.

Benefits of CPTPP
02 How member countries can benefit from this modern and
advanced partnership?

Implications for Canada

03 The benefits that Canada can enjoy from this partnership to
promote trade and growth.

Q&A
04 Discussion for understanding more about benefits of CPTPP
 The largest regional free trade
agreement in Asia

Deeper, broader, more advanced

and integrated commitments in
trade, investments, IP rights and e-
commerce

CPTPP is a free trade agreement (FTA) between 11

countries: Australia, Brunei Darussalam, Canada, Chile,
Japan, Malaysia, Mexico, Peru, New Zealand, Singapore
and Vietnam.

It was signed on 8 March 2018 in Chile and entered into

force on 30 December 2018.

Most important 95% 500 Combined

tariffs millions GDP of
trade agreement in removed people US$10
access trillion
more than 20 years
 Benefits of CPTPP 8. Government Procurement
Open of government procurement market
in CPTPP with fairness and transparency.

07. Recognition of Digital Economy

Recognizing and facilitating the new
digital economy.

06. Intellectual Property Protection

More stringent IP protection measures.

5. Investment Protection & Guarantee

Assurances on repatriation of funds and
capital transfers.

4. Promotion in Services Sector

New provisions to stimulate trade in
services amongst member countries.

3. Ease of customs clearance

New rules on customs clearance to move
goods faster and more cost saving.

02. Integrated market place

Product qualified for Rules of Origin
could be shipped in 11 member countries
and enjoy preferential duties.

01. Access to New Markets

By eliminating duties and non-tariff
barriers with immediate effect.
Benefits of CPTPP
01 Access to New Markets
A truly high quality agreement in cutting down
02
tariff levels
On the very first day of the agreement coming into effect
(entry into force or EIF), more than 90% of all tariff lines
will be cut down. Even agricultural products (highly
sensitive in most countries) are not excluded in CPTPP.
Many of the tariffs will fall immediately to 0 (duty free) on
EIF.
The tariffs that do not fall to 0 on EIF, the majority of tariffs
falls to 0 in a relatively short time period, often within 5-7
years. Most are gone within 10 years.
The results are:
• More choices for consumers, increased consumer
surplus, more domestic and import consumptions;
• Growth in intra-11 countries trade volume and quality;
• Improved trade rules and business environment in
region.
Integrated intra-11 countries market place
Goods are allowed for entry within intra-11
countries market place and enjoy preferential
duties or duty free
Rules of Origin (ROO)
Once the goods meet the product specific Rules of Origin
(ROO) in the CPTPP, it is qualified for entry into all 11
markets without changes of processes, parts, suppliers or
components needed.
These rules support integrated sourcing in consistent with
modern production patterns where parts and components
are produced from multiple countries for final assembly
and delivery to market.
Cumulation
CPTPP also allows for cumulation – “adding up” of content
for many products of raw materials or intermediate goods
from across CPTPP market to qualify for preferential
duties or duty free.
Benefits of CPTPP
03 Ease of customs clearance and e-Commerce
New rules on customs clearance to reduce
04
paperwork, increase transparency, move goods
faster and save costs
Self-Certification of Origin
Importer and exporter can self-declare that their goods
meet the criteria of rules of origin, thus eliminating third-
party certification provider (authorities or Chamber of
Commerce) and related certification fees.
Advanced Rulings
Advanced Ruling mechanism to attain decision from
Customs on the classification, the origin and value of
goods prior to import and export of goods. This will be
binding for 3 years and helps reduce the shipments held
at border.
Time Guarantee for Express Shipment
Commitments to facilitate the timely clearance of express
shipments such as pre-arrival processing and guarantee
of release within 6 hours provided the shipment has
arrived. This facilitation also supports the growth of e-
Commerce.
Promotion in Service Sector
New opportunities for services across
member countries like banking, insurance,
logistics, tourism, consulting, IT.
Negative List Approach for Market Access
All service sectors are opened to member countries,
except the services that are listed in the Negative List
(exception and restriction). In practice, list of closed
sectors is very small and not commercially significant.
Recognition of Qualification
Commitments to recognize the education, licenses,
certifications and experiences obtained in the member
countries for the purpose of authorization, licensing or
certification that is needed or required.
Business Mobility
Facilitate the transparency of the process enabling the
skilled worker to travel between member countries for the
purpose of doing business.
Benefits of CPTPP

05 Investment Protection & Guarantee

06 Intellectual Property Protection
Robust protection to intellectual property
New opportunities in the open of markets and
commitments in national treatment and protection Commitments to protect IP are more stringent
of investments across member countries than the existing commitments of WTO
Intellectual Property to be protected:
Assurance on repatriation of funds and capital  Industrial designs;
transfers  Trademarks;
 Fair compensation in case of expropriation.  Patents;
 Availability of legal recourse in the event of disputes.  Copyrights and related rights;
 International third-party arbitration and settlement is  Etc.
available if there is investor and state dispute.
Benefits of CPTPP

07 Recognition of Digital Economy

08
Recognizing the growing importance of the
businesses conducted over the internet or
electronically
Commitments to facilitate the growth of new
digital economy
 No imposition of duties, fees or other charges on digital
products.
 Recognition of electric authentication and electronic
signatures.
 Protection for online consumers.
 Allowing access to and the use of internet.
 Cross-border information flows and protection of
personal information.
 Facilitating the use of cloud-computing services.
Government Procurement
A US$ 1.9 trillion market of government
procurement
Commitments to ensure the government
procurement is conducted in a fair,
transparent and non-discriminatory manner
 Opening up and access to the government procurement
market of member countries above a certain threshold;
 Ensure the procurement procedures are more
transparent and easier to understand for tender,
eligibility and criteria, and the application process;
 Ensure clear criteria for tendering, award notification
and appeal policies.
 Implications for Canada
The only G7 nation with free trade access to New countries can join CPTPP to increase
Americas, Europe and Asia-Pacific benefits for Canadian businesses

Easier for Canadian SMEs to do Opportunity for Canada to be global hub of

business in the dynamic Asia-Pacific region commerce throughout Asia, Europe and Americas

CPTPP for
Canada

Export will increase for a wide range of sectors, Creation of new jobs and
including agriculture and non-agriculture Why CPTPP matters for Canadian businesses? increased prosperity for Canadians
 As a result of tariff elimination, goods of Canada will be more
Markets access Increased export competitive in CPTPP integrated market:

More than 95% tariff  94% of Canadian export of agriculture and agri-food products are
Together with duty free (worth $7.8 billion in export from 2015 – 2017).
USMCA, CETA, lines in CPTPP will be
eliminated. Thus it  99% of Canadian export of industrial products are duty free (worth
CKFTA, CPTPP $21 billion in export from 2015 – 2017).
completes Canada as leads to an increase
in exports of Canada.  100% of Canadian export of fish and seafood products are duty free
the only G7 nation (worth $732 million in export from 2015 – 2017).
with free trade access  100% of Canadian export of forest products are duty free (worth
to Americas, Europe $2.5 billion in export from 2015 – 2017)
and Asia-Pacific.

 Canada will gain access to Japan (3rd largest economy) and Opportunities
New members
Malaysia and Vietnam (world’s fast growing countries).
can join and prosperity
Allowing Canadian
 It reinforces position of Canada in Asia, establishing new CPTPP member
exporters to do
commercial relationships with seven FTA partners (Australia, Brunei, countries will have
businesses in fairer,
Japan, Malaysia, New Zealand, Singapore and Vietnam) and competitive
more predictable and
strengthen ties with current partners (Chile, Mexico and Peru). advantages. Non-
more efficient
member countries will
environment.
be interested and
Expanding global
seek to join this
value chains of
partnership.
Canada.
Creating more jobs
and prosperity
Q&A
Thank You