Government ready to introduce bill to implement CPTPP

Champagne says it will come before Parliament starts summer recess. Long-awaited legislation to ratify Canada's participation in the Comprehensive and Progressive Trans-Pacific Partnership free trade deal will before presented to Parliament before the summer recess this month, says Trade Minister Francois-Philippe Champagne.“We will proceed expeditiously to ratify the agreement and will introduce legislation before the House rises this summer to make sure that our workers, our SMEs across this country, have access to one of the most promising markets in the world,” he told the Commons.With the NAFTA negotiations in doubt, “there has never been a better time to diversify,” he told Ontario Conservative MP Dean Allison. The deal will open a market of 500 million consumers and 40 per cent of the world economy to Canadian exports.Last month, the minister tabled the CPTPP treaty in Parliament, which led to repeated calls from agrifood and other organizations to introduce the legislation so Canada could be among the first countries to ratify the deal.The current Parliamentary session is scheduled to run to June 22 and Champagne didn't say whether he will try to achieve passage of the bill by the Commons and the Senate by that date. Both chambers are already busy with a backlog of government bills.The CPTPP will come into effect once six countries ratify the agreement triggering tariff cuts, which will secure a first-mover advantage over the countries that are slower to ratify it.Like other agrifood groups, Ron Bonnett, President of the Canadian Federation of Agriculture, wants the legislation passed by Parliament as soon as possible. “Let's have Canada be among the original members of the deal. It offers many trade benefits for us. Canada has been all about building relationships and the CPTPP is an important example.”While the deal could lead to an increase in dairy and poultry imports, the supply managed sector is well aware of the challenges it could face, he said. “The question is how the government will offset that impact.” What's needed are clear ideas on expanding the sales of Canadian produced dairy and poultry products in Canada.President Brian Innes of the Canadian Agri-Food Trade Alliance, says many countries are moving to be among the original signatories to the trade deal. Mexico ratified the deal in April while Australia has tabled the treaty in its Parliament and vows to ratify it. Japan's Lower House will vote on it before the end of June and Malaysia and Chile are both expected to implement the agreement quickly. New Zealand, Singapore, Peru, Vietnam and Brunei are all working towards an autumn implementation date.If Canada isn't among the first six countries to implement the CPTPP, it will “face headwinds in the Asia-Pacific,” he said. “Canadian agrifood exporters are currently at a competitive disadvantage because other countries have trade agreements that Canada does not. Mexico, Australia and Chile have free trade agreements with Japan and the Japan-EU Economic Partnership Agreement will soon slash 85 per cent of Japanese tariffs on European agrifood products.“Being part of the original six countries would also give Canada more influence in negotiating the terms for the many countries that have expressed interest in joining the CPTPP, including the United States,” he said. “For the agrifood sector that is growing through exports, the CPTPP is a big deal.”CAFTA says research shows the trade pact could increase agrifood exports by $1.84 billion while not being in the CPTPP “could mean $2.93 billion in opportunity costs for the agrifood sector--a significant blow to the sector that generates $96 billion in GDP annually and supports about 1 million jobs in urban and rural communities across the country.“Asian markets are the key to agri-food growth,” he said. “Implementing the CPTPP is essential for industry to meet government's target of $75 billion in agrifood exports by 2025.”The TPP agreement could at least increase beef exports by $300 million, $300 million more pork exports, an additional $100 million in barley products, and $780 million more value-added canola exports. In addition, pulses, soybeans, sugar and processed food products all stand to gain improved access.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.