International Trade is a Top Priority for Canada

Dilas International Customs Brokers has a vested interest in all trade agreements and partnerships concerning Canada. It directly impacts how our Customs brokers and clients prepare their international shipping documentation and account for any corresponding duty. Although NAFTA is the most well-known free trade agreement (FTA), there are numerous other FTAs with various countries all over the world, as well as many pending agreements that are still in the negotiation process.

New Trade Opportunities

The Conservative government of Canada has been exploring new trade opportunities like the Canadian-European Union trade agreement and the Trans-Pacific Partnership (TPP). The likelihood of the European trade agreement is still uncertain and negotiations appear to be at a standstill. It’s uncertainly is now generating more emphasis on Canada’s involvement in the TPP.

Trans-Pacific Partnership

The Canadian government needs to participate in the TPP free-trade agreement to demonstrate that they are truly serious about expanding and diversifying their international trade capabilities. Involvement in the TPP trade agreement could increase Canadian exports by more than $15 billion, especially if it results in access to the growing Asian markets.

One Third of All Global Trade

The TPP will secure a trade alliance between the existing NAFTA partners (Canada, the United States, and Mexico), as well as Australia, Chile, Malaysia, New Zealand, Peru, Japan, Singapore, and Vietnam. This impressive agreement would represent a combined global trade economy of more than $27 trillion (35% of the global GDP), which makes up about a third of all global trade.

The TPP also has the potential of expanding into the remaining markets in the Asia-Pacific Economic Cooperation countries, including China. If China decides to join the TPP, it would make it the first trade agreement to include the world’s largest three economies: China, Japan, and the United States.

Boost to Canada’s GDP

The TPP could result in an almost $10 billion yearly increase to Canada’s GDP. The guidelines being proposed for the TPP trade agreement are also expected to reduce risks, improve market access, and lower costs for Canadian exporters.

The TPP free-trade agreement is viewed as Canada’s greatest chance to gain access into the prosperous Asian markets while at the same time asserting greater independence from their current trade relationship with the United States. It will also help protect Canada’s involvement in current trade agreements like NAFTA.

There are so many benefits for Canada in the TPP free-trade agreement, and many economists feel it is critical to Canada’s growth and prosperity. Although it is still in negotiations, the agreement is predicted to be approved provided it supports the rights and standards governed by Canadian law. Dilas International Customs Brokers will keep our clients informed on its progress and ensure that they are fully aware of new free-trade opportunities.