Tentative Trans Pacific trade deal announced

by The Canadian Press (CPSTF)

ATLANTA, Georgia—Twelve countries, including Canada, have agreed to create the world’s largest regional trade zone.

After five days of marathon, around-the-clock negotiations, a deal has been reached to create the Trans-Pacific Partnership, which would cover 40 percent of the world’s economy.

The proposed agreement reduces or eliminates barriers in a wide range of sectors and could lead to more Canadian exports of pork, beef, canola, high-tech machinery and a variety of other products.

It also entrenches new international trade standards in Asia, setting a template should any other countries in that fast-growing region—like China—want to join someday.

Other parts will be controversial in Canada. Cars will be allowed without tariffs, as long as they have 45-per-cent content from the TPP region—lower than the 62.5 percent regional-content provision under NAFTA.

Canada’s protected dairy sector remains mostly intact, with a modest increase in permitted imports for supply-managed sectors. Farmers will be compensated for losses through a multibillion-dollar series of programs.

The deal needs to be ratified in national parliaments—and the NDP’s recent opposition to the TPP process is an early example of the political challenges in could face, in several countries.

But voters can’t yet see the fine print. The actual text of the deal is undergoing a legal review, and it’s not clear when it will be available.

In the US the National Retail Federation was one of the first organization to comment. Senior Vice President for Government Relations David French said in a statement:

“Trade agreements are vital for American retailers large and small. They help merchants provide high-quality, low-cost goods to U.S. consumers, and provide new overseas market opportunities for American companies and workers. It’s taken hard work on the part of U.S. negotiators to conclude this agreement, and we congratulate United States Trade Representative Michael Froman and his team for achieving an agreement.”

“International trade supports millions of jobs in the retail industry, and that number will only grow with passage of TPP. NRF looks forward to reviewing the final agreement with our members to identify the benefits for retailers and their customers.”

—with files from MM&D Staff