Canada Joins TPP Talks

After months of signalling its interest to do so, Canada has received all-member support for its entry into the Trans-Pacific Partnership (TPP) negotiations.

The news was welcomed by Canadian Prime Minister Stephen Harper, who said that joining the TPP is consistent with Canada’s active and ongoing engagement in the Asia-Pacific region and its commitment to free and open trade. He explained: “Opening new markets and creating new business opportunities leads to jobs, growth and long-term prosperity for all Canadians. A TPP agreement will enhance trade in the Asia-Pacific region and will provide greater economic opportunity for Canadians and Canadian businesses.”

Nine countries are currently negotiating toward a free trade agreement, to be known as the TPP. Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, the US and Vietnam will now be joined by Canada and Mexico, which was also granted entry to negotiations this week. Their addition will increase the market represented by the membership from 510m people and a gross domestic product (GDP) of USD17 trillion to 658m people and a USD20 trillion GDP.

In a statement issued on behalf of the TPP group, New Zealand's Minister of Trade Tim Grosner said: “We believe that Canada’s participation in the negotiations will contribute to the objective of creating a 21st-Century agreement that will spur economic growth and development, promote innovation, benefit our consumers, and support the creation and retention of jobs, higher living standards and the reduction of poverty in our countries and the broader Asia-Pacific region.

“The current TPP members particularly welcomed Canada’s commitment to achieving the shared goal of a comprehensive, high-ambition, next-generation agreement as rapidly as possible, consistent with the statements made by TPP Leaders and Trade Ministers on 12 November 2011 in Honolulu. We look forward to working with Canada as we seek to conclude a comprehensive and balanced package, taking into account the diversity of our levels of development," Grosner concluded.

Existing TPP participants will now need to complete their domestic legal procedures, where applicable, after which Canada will formally join and participate in the negotiations. Canada is also exploring free trade with Thailand and has begun free trade negotiations with Japan.

June 24, 2012

Source: Tax News