message from the board chair
Canadian ports, such as the Vancouver Fraser Port Authority, are expected to experience an increase in traffic and volumes when the TPP comes into effect
Josef Hanus / Shutterstock. com process, you will benefit from knowing some of the basic facts related to the TPP.
Some facts related to the TPP are:
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12 – Countries involved in the Trans-Pacific Partnership trade deal. Ratification would create the largest trade zone in the world, spanning four continents and 800 million people.
■ ■ $ 28.5 trillion – The combined gross domestic product of the 12 trade-pact countries, which, it is estimated, collectively produce 40 per cent of the world’ s economic output.
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45 – Per cent of a vehicle’ s content that must come from Canada to avoid import tariffs, a change from the North American free-trade agreement( NAFTA), which established that 62.5 per cent of a vehicle’ s content must be local.
■ ■ $ 4.3 billion – Subsidy the government has promised over 15 years to protect current dairy, chicken and egg farm revenues. TPP countries get duty-free access to 3.25 per cent of Canada’ s dairy market and 2.1 per cent of its poultry market.
■ ■ $ 158.6 billion – Average annual value of Canada’ s exports of metals and minerals to TPP countries from 2012 to 2014, according to numbers provided by the federal government. The sector includes petroleum products, potash, precious metals, iron, steel, aluminum and nickel.
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51 – Total number of countries, if TPP is ratified, with which Canada will have free-trade agreements, which account for roughly 60 per cent of the global economy, according to data released by the federal government.
Some other important facts:
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This agreement has not as yet been ratified by Canada
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There are varying impacts on Canadian businesses
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The removal of tariffs is not all done at the same time. Some, for example automotive, are five years away for Canada and 25 for the U. S.
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Some key areas related to supply chain are:
● ● Standardization of rules and regulations
● ● Reduction or elimination of tariffs
● ● Simplification of the Rules of Origin
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Import of items from TPP countries will become easier and small Canadian businesses will have a wider window of opportunity in the global marketplace
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New trade zones will open up
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Canadian ports will experience an increase in traffic and volumes
As always, please feel free to reach out to me at jferber @ scma. com with any questions or comments.
8 • SUPPLYCHAINCANADA. CA • SCMA