Canada’s economy will be profited largely by significant drops in tariffs in the North American auto industry and by nudging Canada’s agricultural sectors towards greater international trade. Conservative leader Stephen Harper says the deal protects Canadian jobs and creates more for the future generations as it secures access to hundreds of new customers in the Asia-Pacific region.
Canadian officials have been briefing media over the possible opportunities for them from the TPP deal. For example, tariff rates on Canadian beef exports to Japan will be lowered to an astonishing 9% from 38% for the next 15 years. Also other tariffs on commodities like canola, fish and seafood, forestry and industrial goods will be eliminated or lowered across the TPP region in phase-in period of 5-15 years.
However, the deal means aspects of NAFTA changes to 60% of parts and vehicles sold tariff-free to be manufactured in North America. In order to qualify as tariff-free under TPP, 45% of net cost of the vehicle needs to originate in TPP countries. For auto-parts, 45% of core parts and priority parts and 40% of others parts need to originate in TPP countries. Canada granted new access for TPP countries for its agricultural sector.
With the implementation of TPP, two programs will be available to farmers that incur potential losses; a 15-year $2.4 billion income guarantee program and a 10-year $1.5 billion quota value guarantee program. A $450 million program to support improvements to Canadian dairy, poultry and egg processing facilities is also available. Cabinet has also approved a $15 million market development fund to help the supply-managed agriculture sector promote Canadian products, bringing the total price tag to $4.3 billion for the suite of transition assistance on offer.
So its all smiles for Canadian economy, but each country needs to ratify the final text, and in Canada it will take the form of a vote in Parliament.
Full report: http://www.cbc.ca/news/politics/canada-election-2015-tpp-agreement-atlanta-1.3254569