From a news release
The federal government has ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), securing Canada a coveted spot among the first tranche of countries in the trade accord. International Trade Diversification Minister Jim Carr announced Monday that Canada notified the CPTPP Secretariat in New Zealand that the formal process to ratify is complete.
Canada takes its place alongside CPTPP ratified countries Japan, Mexico, Singapore, and New Zealand. One more country needs to ratify the Agreement domestically to trigger the CPTPP, which will then come into effect 60 days later.
The Canadian Cattlemen’s Association (CCA) is appreciative that the federal government moved swiftly to ratify the agreement and ensure Canada’s exporters will benefit from day one. CCA President David Haywood-Farmer said it is a huge relief for beef producers to know that competitive access to lucrative and diverse markets in Japan and Asia-Pacific is finally within reach after years of working diligently to bring the sometimes tenuous blockbuster trade deal to fruition.
“Since 2011, the CCA has advocated for the Trans-Pacific Partnership and then the CPTPP, seeing it as the best path forward to address Japan’s 38.5 per cent tariff and threat of 50 per cent safeguard tariff on Canadian beef. Our position remained steadfast through two federal governments, two iterations of the Agreement itself, and five CCA Presidents. That history should tell you how strongly CCA feels about the potential of the market diversification and lower Japanese tariff for Canadian beef producers under the CPTPP,” he said.
Once the CPTPP comes into force, the prohibitive Japanese tariff of 38.5 per cent will immediately drop to 27.5 per cent on Canadian fresh beef and to 26.9 per cent on frozen beef. Those are just the first of many cuts scheduled; on April 1, 2019 Canada will enjoy a second cut in Japan down to 26.6 per cent on both fresh and frozen and eventually down to 9 per cent over several years.
With CPTPP, Canadian beef will also be exempt from the Japanese safeguard tariff of 50 per cent on frozen beef.
“This Agreement is a game-changer for the Canadian beef industry,” said Haywood-Farmer. “I’d like to thank the Government of Canada for securing our seat at the table, and we encourage at least one other CPTPP member country to speed through its domestic ratification processes and take the sixth spot so we can get this CPTPP moving and benefit from the initial round of tariff cuts.”
Australia’s implementation legislation received Royal Assent on October 17. CCA hopes the country will complete its ratification process to become the sixth country shortly.
The association expects countries seven through 11 to continue their own processes so that the CPTPP will be in force among all 11 signatories sometime in 2019.
On Thursday October 25, the Senate of Canada passed Bill C-79 to implement the CPTPP. The bill then immediately received Royal Assent. The Government of Canada deployed a rarely used “walk-around” process over the weekend to pass some 14 Orders in Council required to complete the domestic process and notification was delivered to New Zealand on Monday, October 29.