Order Fixing the date of entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as the day on which that Act Comes into Force: SI/2018-101

Canada Gazette, Part II, Volume 152, Number 23

Registration

SI/2018-101 November 14, 2018

COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP IMPLEMENTATION ACT

Order Fixing the date of entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as the day on which that Act Comes into Force

P.C. 2018-1314 October 26, 2018

Her Excellency the Governor General in Council, on the recommendation of the Minister for International Trade, pursuant to section 50 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act, chapter 23 of the Statutes of Canada, 2018, fixes the date of entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as the day on which that Act comes into force, other than section 49, which came into force on assent.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Order fixing the date of entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act (the “Act”) as the day on which the Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam comes into force.

Objective

The objective of the Order is to bring into force the provisions of the Act necessary to implement the CPTPP.

Background

On February 4, 2016, Canada and 11 other Asia-Pacific countries (Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam) signed the original Trans-Pacific Partnership (TPP) Agreement. However, on January 30, 2017, the United States notified TPP signatories that it did not intend to ratify the TPP Agreement; this meant that, as written, the TPP could not enter into force. As a result, beginning in May 2017, the 11 remaining signatories proceeded to negotiate a new agreement: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Negotiations concluded on January 23, 2018, and the Agreement was signed by all 11 parties on March 8, 2018, in Santiago, Chile.

The CPTPP will enter into force 60 days after the first six signatories notify the CPTPP Depositary (New Zealand), in writing, of the completion of their domestic ratification procedures. For each subsequent signatory, the Agreement will enter into force 60 days after the signatory notifies the Depositary of the completion of its domestic ratification procedure.

The CPTPP will form a trading bloc consisting of 11 countries with a combined gross domestic product (GDP) of $13.5 trillion, or 13.5% of global GDP, with 495 million consumers. The Chief Economist at Global Affairs Canada estimates that the CPTPP will generate long-term GDP gains for Canada totalling $4.2 billion. These benefits will be felt in all sectors of the Canadian economy, including beef, pork, cereals, fish and seafood, forestry, a range of industrial products, and financial and professional services, among others.

Beyond the economic benefits, the CPTPP will strengthen the rules-based international system underpinned by robust institutions that facilitate global value chains and will ensure a level playing field that maximizes the benefits of free trade for everyone. It will effectively set the terms of trade in this important and growing region.

Implications

By bringing the Act into force, Canada is in conformity with its commitments made under the CPTPP. Part I of the Act approves the CPTPP and covers amendments necessary to participate in the implementation and operation of the Agreement. For example, it allows the Minister of International Trade Diversification to appoint panellists for dispute settlement proceedings, and the Minister of Labour to act as Canada’s senior government representative on the Labour Council. It also allows for the Government to pay Canada’s share of expenses related to the administration of the Agreement.

Part II of the Act amends eight pieces of legislation in order to bring them into conformity with Canada’s obligations under the CPTPP. For example, the Customs Tariff has been amended to implement the preferential tariff treatment for goods from each CPTPP party. The Trade-marks Act has been amended so that it will apply to “confusingly similar goods” in addition to counterfeit trademark goods. The Investment Canada Act has also been amended to extend Canada’s net benefit review threshold of $1.5 billion in enterprise value for non-state-owned enterprise investors to CPTPP parties.

Consultation

Since November 2015, the Government has conducted comprehensive public consultations with Canadians on the TPP Agreement (November 2015 to May 2017) and a potential agreement among remaining TPP members without the United States (September and October 2017). Formal consultations since 2015 included some 250 interactions with over 650 different stakeholders and partners, through targeted meetings, round tables, and town halls. Consultations saw broad participation among businesses and business associations, labour unions, civil society organizations, think tanks, academia, youth, and the general public. The Government also received written submissions from stakeholders in response to Canada Gazette notices, and received over 54 000 letters and emails from organized letter-writing campaigns. The Government also engaged with all 13 provinces and territories as well as Indigenous partners.

Public consultations on the original TPP Agreement revealed broad support from a majority of Canadian businesses and business associations, and highlighted the importance of the Japanese market as a destination for Canadian exports. Stakeholders from the auto and supply management sectors expressed mixed to negative views on the impact of the Agreement’s market access outcome. Canadians also expressed concerns over the TPP’s outcomes on investor-state dispute settlements, intellectual property, and culture — areas that were targeted during CPTPP negotiations through the suspension of certain provisions and new bilateral side letters with CPTPP members.

Following the conclusion of negotiations, the Government published the final text of the CPTPP on the Global Affairs Canada website on February 20, 2018. The consolidated texts of Canada’s bilateral side instruments with CPTPP members were released upon signature on March 8, 2018.

Departmental contact

For more information, please contact

Jay Allen
Director
Trade Policy and Negotiations – Asia Division
Global Affairs Canada
Telephone: 343-203-4108