With the United States pulling out of the Trans-Pacific deal, there will be even greater benefits for Canada in the 11-country accord
Progress is being made on a revised Trans-Pacific Partnership agreement.
Japan and other countries have stated the goal is to have an announcement of an agreement in principal in November at the Asia-Pacific Economic Co-operation (APEC) summit in Vietnam.
The agreement would be between the 11 remaining members of the TPP, after the United States withdrew from the pact.
Carlo Dade, director of the Trade and Investment Centre of the Canada West Foundation, said the new deal will be more advantageous for Canada than the original agreement.
“We do better without having to share the Japanese market with the Americans,” he said.
A report prepared for the foundation shows Canada’s net benefit under TPP11 would be C$3.4 billion versus $2.8 billion under TPP12.
The reduced competition could be a big boost for fruits and vegetable exports from Canada to member nations as well.
Japan, Australia and New Zealand are all committed to coming to terms on a new pact. It is taking some convincing to get some of the other Asian countries on board because the real prize of the original agreement for them was gaining freer access to the U.S. market.
But the thought is that if a TPP11 agreement emerges and the U.S. loses market share in important, high-value markets like Japan, the U.S. business sector will pressure Trump into reentering the deal.
A similar thing happened when Trump was poised to terminate the U.S.-Korea Free Trade Agreement. He holstered his pen after an intense backlash from industry and the two countries are now renegotiating the deal rather than scrapping it altogether.
Critics of TPP11 say the deal could complicate NAFTA negotiations and would be akin to Canada thumbing its nose at the U.S., which is by far and away its largest trading partner.
Dade said that sentiment exists inside the hallways of Global Affairs Canada. He thinks it would be foolish for Canada to sacrifice what’s on the table in TPP11 based on fears of reprisals from the U.S. that may or may not happen.
Source: producer.com
