Summary

The CPTPP has made an important contribution to the international trading environment for Canada`s agri-food exporters. The “gold standard” model of the CPTPP contains enhanced market access provisions, a clear emphasis on science-based decision making in sanitary and phytosanitary measures, and a broad dispute settlement mechanism.
We currently lack a quantitative, transparent assessment of the uptake of the Agreement, with emphasis on the trade balance trend for agri-food, with a break-down by sectors. Market access outcomes have not necessarily met the agreement`s potential, due to continuing quotas and non-tariff barriers. A proper analysis of these factors would be helpful to the government and industry to understand how to improve the uptake of the Agreement going forward.
CAFTA strongly supports the three Auckland Principles of: 1) preparedness to meet the Agreement’s high standards; 2) a demonstrated pattern of complying with trade commitments and 3) recognition that decisions are dependent on the consensus of the CPTPP Membership. The CPTPP gold standard will potentially be undermined by the accession of the United Kingdom, which is preventing market access for Canadian product without scientific justification. It is essential the Government of Canada ensure UK respect for CPTPP provisions to prevent weakening the CPTPP model and underline the importance of future applicants meeting the standard of the Auckland Principles.

Introduction

The Canadian Agri-Food Trade Alliance (CAFTA) is a coalition of national organizations that support a more open and fair international trading environment for the agriculture and agri-food industry. This includes the beef, pork, grains, cereals, pulses, soybeans, and canola, as well as the sugar and processed food industries. The sectors CAFTA represents support over a million jobs in urban and rural communities across Canada.

For CAFTA members, the attraction of the CPTPP is that most of its members are in the world’s most buoyant economic region. Further, the CPTPP enjoys a deep and broad set of rules, market access commitments, and binding enforcement mechanisms. These are attractive qualities in this time of ongoing trade frictions and a growing weakness of international institutions.

Another attractive element is the CPTPP’s fundamental principle, as reaffirmed by trade ministers at their meeting last November in San Francisco – that it should be "dynamic and living" and should "remain the ‘gold standard’ for trade agreements" globally.

The fact that the US has not joined the CPTPP can be considered to give us an advantage over that agri-food competitor. This is welcome given the US advantage in size and geo-economical influence.

in 2023, Canada's agriculture and agri-food exports to the region reached $22.8 billion, and we need to continue to focus on opportunities in this fast-growing region. CAFTA has welcomed the creation of the Indo-Pacific Agriculture and Agri-Food Office in Manilla. We must ensure that the resources committed to the Office will be protected as we move forward. Maintaining human resources on the ground is a key element of managing relationships that help protect Canadian market access.

CAFTA considers that the government could usefully undertake work to identify ways to facilitate maximum utilisation of the CPTPP. We currently lack a quantitative, transparent assessment of the uptake of the agreement, with emphasis on the trade balance trend for agri-food, with a break-down by sectors. Market access outcomes have not necessarily met the agreement`s potential, due to continuing quotas and non-tariff barriers. A proper analysis of these factors would be helpful to the government and industry to understand how to improve the agreement going forward.

By means of example, Japan is a major food importer and a key market to which some products such as beef have enjoyed improved access under the CPTPP, whereas others including sugar, peas and beans still face tariff and quota restrictions. By contrast, Canadian peas receive tariff-free access to Vietnam through CPTPP, and exports have grown significantly since 2017.

Trade multilateralism has been under pressure in recent years. In this context, the CPTPP has made an important contribution to international trade architecture in relying on the science-based approach to sanitary and phytosanitary (SPS) measures. We wish to strengthen this tendency, avoiding reliance on competing precautionary approaches to regulation that are non-science based and can constitute non-tariff barriers that keep Canadian product out of markets in a discriminatory fashion.

CAFTA has expressed our disappointment that the UK’s accession to the CPTPP did not address many of the tariff barriers that limit Canada’s market access for important Canadian agri-food exports to the UK such as beef and pork. At the same time, we noted positively the UK’s adherence to language facilitating the trade of products of agriculture biotechnology (i.e., grains). CAFTA strongly support the three Auckland Principles of preparedness to meet the Agreement’s high standards, a demonstrated pattern of complying with trade commitments and recognition that decisions are dependent on the consensus of the CPTPP Membership. Ensuring future applicants meet this standard is essential.

CPTPP accession must improve market access for existing members. It is essential that the Government of Canada continue to closely monitor the UK’s implementation and compliance to the CPTPP’s SPS Chapter and, should the UK not comply, respond through dispute resolution or other means necessary to ensure Canadian agriculture benefits from the UK’s accession to the CPTPP. The UK’s accession is precedent-setting for any future economies wanting to join the agreement. Therefore, non-compliance related to SPS measures would send a negative signal to potential new partners that the high standards of the pact do not need to be met.

Thank you for the opportunity to participate in this consultation. Several CAFTA members also have plans to make submissions on this important topic. Please contact us if you have any questions or if we can assist in any other way.

Respectfully,

Michael Harvey
Executive Director