Trans-Pacific Partnership too important to Canada to be held hostage to partisan politics
NationalPost.com – FinancialPost/FP Comment – Canada will enjoy a unique advantage as the only country with preferred access to both European and Pacific markets
May 18, 2015. Jeff Brownlee
Now that President Barack Obama has finally been given authority to negotiate trade agreements on behalf of the U.S. government without further congressional intervention, chances are that Trans-Pacific Partnership negotiations will quickly conclude. A TPP agreement promises new opportunities for Canadian businesses in key markets in the Americas and across the Pacific.
The TPP will make it easier for Canadian companies to do business in 11 countries around the Pacific where we do not have trade agreements at the present time, as well as our current free trade partners the United States, Mexico, and Chile. The TPP will eliminate tariffs on Canadian exports and lower the costs of moving goods and people across borders. It will remove restrictions on Canadian investment and the activities of our services exporters. It will help protect intellectual property rights and guard against discriminatory regulations that exclude Canadian products and services. And, it will enable Canadian companies to get their products tested and approved for sale in new markets. The TPP should even make it easier to do business with our NAFTA partners.
With spending by consumers and governments and investment in our resource and housing sectors all slowing down, our goods and services exporters have a more important role than ever in sustaining economic growth and well-paying jobs in Canada.
Canada’s export recovery has been frustratingly slow. Only in the first quarter of this year have our export volumes topped pre-recessionary levels. Canadian companies face formidable challenges when it comes to doing business abroad. Investment risks and barriers to entry can be high. For many of the small and mid-sized companies that comprise the majority of Canadian businesses and promise the greatest potential for export growth, the costs and uncertainty of going global are daunting. That is why TPP is so important.
Canada’s newly negotiated Comprehensive Economic and Trade Agreement with the European Union (CETA) is another important game changer. It needs to be ratified and implemented as soon as possible. With the TPP and CETA, Canada will enjoy a unique advantage as the only country in the world with preferred access to both European and Pacific markets – a $46 trillion free trade zone of 1.3 billion people representing two-thirds of the world economy.
The TPP and CETA will require Canada to open our markets to more goods, services, and investment from other countries as well. There will be more European cheese available on our store shelves, and better access to lower priced milk, eggs, poultry, and other supply managed products. Many consumers and food manufacturers actually see that as a good thing. They want easier access to more competitively priced food in Canada.
Canada’s participation in TPP should not be a tough decision, and even with an election looming, it is too important to be held hostage to partisan politics. Canada needs to be part of the TPP deal as soon as it is concluded. We cannot wait in the expectation of better terms that will never come. Canadian exporters need walls to come down now.
Jeff Brownlee is VP of public affairs and partnerships, Canadian Manufacturers & Exporters.
< http://business.financialpost.com/fp-comment/trans-pacific-partnership-too-important-to-canada-to-be-held-hostage-to-partisan-politics >
Tags: economy, globalization, ideology, standard of living
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