In the article, Ratifying the TPP could be bad for Canada, but not ratifying it would be even worse: memo, the author examines the multiple options around the TTP as well the future of trade in Canada. As most know, the TTP has been signed by all the countries involved, but it has yet to be ratified. With growing sentiment against the TTP in the US, Canada, and other countries, it’s not surprising that some experts believe the agreement may never be ratified.
The previous finance minister of Canada, Joe Oliver, warned Canada in an October memo that not participating in the TTP could be disastrous. In part, Canada needs to be part of the agreement if only for defensive measures. If Canada were to opt out of the TTP, it would lose its ideal trade positions to the US and Mexico. The memo noted specifically that these North American supply chains “underpin the [Canadian] economy. On the positive side, the TTP would open the doors to trade with Asian countries, a position Canada does not hold strongly right now.
On the flip side, the TTP would dilute Canada’s great position within the NAFTA. There would be significant competition from Asian countries. Furthermore, the TTP could eliminate Canadian jobs and damage some sectors of the economy. Interestingly, Nobel Prize-winning economist Joseph Stiglitz has urged Canada to abandon what he described as a “badly flawed” deal. Suffice to say, the future of the TTP is in doubt.
Would the dissolution of the TTP be the best outcome for Canada?
Why hasn’t there been more sentiment in Canada about the TTP’s other provisions aside from trade?
Will Canada’s relations with Asian countries actually become worse if the TTP is not signed?