CALGARY, AB – Canada can best protect existing trade relationships and enjoy a net gain in trade by ratifying the Trans-Pacific Partnership agreement, argues a report today from the Canada West Foundation.
Our country would gain greater access to nine new markets around the Pacific and be in a better position to protect its relationship with its most important trade partner – the United States – by joining the partnership, write authors Carlo Dade, director of the Centre for Trade & Investment Policy, and policy analyst Shafak Sajid.
The report, called The TPP: The West wants in, notes that the 12-nation trade agreement is the largest, most complex and potentially most impactful agreement Canada has ever been a part of. In effect, the deal updates and replaces the North American Free Trade Agreement.
The report notes concerns over the agreement’s impact on the dairy and automotive sectors mean ratification is far from certain. It provides a “Plan B” – several alternative actions Canada can take to advance its interests around the Pacific – if the agreement is not ratified.
If other nations ratify the deal and Canada stays out, the auto sector will still face new competition for share of the U.S. market, the authors argue.
“There are winners and losers in every trade agreement, but if the U.S. and Mexico ratify the TPP, Canada must follow,” said Sajid.
Dade said western Canada in particular stands to benefit from the TPP agreement because our portion of national exports is larger than our portion of the country’s population. “There is both great opportunity with, and need for, this agreement in the West.”
The full version of The TPP: The West wants in can be downloaded at cwf.ca.