Senate adopts trade agreement between Asia and Pacific as Canada becomes fifth country to adopt CPPO

A bill to implement the Global and Progressive Trans-Pacific Partnership (PCPCC) trade agreement was approved by the Senate after only one week of study.

The bill should receive royal assent later today. Canada will be in the final stages of adopting an agreement that will cover a block that represents more than $ 425 billion in trade each year.

Although Canada has already signed the PCSP, each country party to the agreement must also adopt enabling legislation to change tariff rates and other relevant laws that may be affected by the removal of most of the barriers. Trade.

Even after the Senate vote, Prime Minister Justin Trudeau's cabinet will have to make regulatory changes, by decree, before officially ratifying the trade agreement.

The agreement comes into force 60 days after six of the eleven signatories have ratified it by law.

Canada is now joining four other countries that have officially made it: New Zealand, Mexico, Japan and Singapore. Two other countries – Vietnam and Australia – are in the advanced stages of the debate.

Minister of International Trade Diversification Jim Carr will address the media at 4:45 pm AND to discuss the PSTN. CBCNews.ca will broadcast his remarks live.

According to observers, being among the first six countries to adopt the agreement could be economically important for Canada, as it would give it a "prominent advantage", allowing it to stay in business. to rapidly establish in important supply chains.

There is a concrete example of this first-mover advantage in Canadian beef and pork exports to Japan.

If Canada is part of the deal at the time of entry into force, beef and pork exporters will have the opportunity to use their preferential market access to replace US exports – which will be more expensive because they will be charged higher tariffs.

(US President Donald Trump took his country out of the PTP, organized by President Barack Obama shortly after his election, and the other TPP countries took the lead without him, reaching an agreement in principle on a moderately revised agreement. earlier this year.)

Fast work

For example, the interests of farmers and other trade promoters have urged the Senate to quickly pass the implementation bill, Bill C-79, and to abandon a comprehensive study in committee, as the agreement has already subject to numerous consultations and parliamentary proceedings.

The members of the Standing Senate Committee on Foreign Affairs and International Trade were largely obliged to complete their study – including an article-by-clause review of the bill – in just three sessions during a meeting. week. The committee heard from lobby groups representing unions, business and agribusiness. The chair of the committee, Saskatchewan Conservative Senator Raynell Andreychuk, said the committee members were "efficient in their time".

The bill was passed at third reading Thursday afternoon at the chamber.

Despite lobbying efforts, at least one group had asked the Senate to slow down its scrutiny: the Council of Canadians, an organization that has rung red flags on trade deals.

The council urged the Senate to serve as a bulwark against an agreement that was quickly passed by the House of Commons, a view that the upper house clearly ignored.

Ratification "reckless"

"The ratification process for the PSTN has been imprudent," Maude Barlow, Honorary Chair of the Council of Canadians, said in a statement to CBC News Thursday.

"The Trudeau government decided a long time ago that the CPPP was considered a fait accompli, ignored the concerns of the vast majority of those who participated in the consultations and who expressed many doubts about the agreement. In particular, investor-state provisions that will give more companies have the right to challenge Canadian regulations and standards.

"Similarly, the Senate Foreign Affairs Committee ignored the advice of so many Canadians and endorsed the agreement by offering little debate or exchange of information." It's a shame because this agreement has serious flaws that are poorly known by many elected leaders. "

The benefits of the PCSP would be substantial as it would provide Canadian businesses with better duty-free access to the world's largest trading bloc, representing some 495 million consumers. The agreement will eliminate up to 95% of tariff lines between the parties.

The Chief Economist of Global Affairs Canada said the PSTN would generate more than $ 4.2 billion in economic gains for Canada.

"Canada needs to diversify its trade relations," said Brian Kingston, director of international affairs and taxation at the Business Council of Canada, noting that over 76% of Canadian exports are still destined for the United States.

"With increasing protectionism in the United States, the need for diversification has never been so clear.Asia is driving the growth of the global economy and Canada must be well positioned to We believe that tariff reductions under the PCSP will significantly boost our exports. "

Not everyone is convinced. Businesses in some sectors – including auto parts manufacturing and dairy production – fear that Canada's openness to more imports from the Asia-Pacific region may not challenge the competitiveness of domestic industries .