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