Carr calls for senators to expedite bill for new Pacific trade deal
Senators should quickly approve legislation to enter a Pacific trade agreement because Canada will win an advantage from being in the first group of nations to ratify it, Trade Diversification Minister Jim Carr said.
Four of the six nations needed to start the CPTPP have already signed on. When it goes into effect, Canada will have unique trade ties to North America, Europe and Asia, representing twothirds of the world’s output, Carr said.
“It would be very helpful, senators, for Canada to be part of this initial group, and we know that the date is fast approaching,” the minister said Thursday to the Senate’s trade committee in Ottawa.
“Early November is a target we shouldn’t miss.”
Canada agreed in principle earlier this year to join the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership, or CPTPP. Bill C-79 to ratify the agreement now needs the approval of the Senate after passing the House of Commons.
The deal goes into effect 60 days after six countries have completed ratification procedures, according to a government backgrounder. That gives those six first-crack.
The push to ratify is entwined with other trade talks, with U.S. President Donald Trump looming large.
The U.S. quit the deal but has since notified Congress of intent to launch trade talks with Japan, the largest economy in the CPTPP pact.
What impact those talks could have on key sectors like autos — or on outstanding U.S. tariffs on steel and aluminum — is unclear.
Canada, meanwhile, is trying to partly wean itself off relying on U.S. trade, and sees the CPTPP deal as a key part of that.
Senators didn’t indicate in the hearing when they might approve the legislation, but earlier in the week signalled a rush.
“It is crucial to the public interest that Canada ratify the CPTPP as soon as possible,” said Sen. Sabi Marwah, the bill’s sponsor.
“We want to know now that we are going to beat the other three or four who are trying to get in in front of us,” added Larry Smith, who leads the Conservatives in the Senate.
The CPTPP passed with the support of Prime Minister Justin Trudeau’s Liberals and the Conservatives in the House of Commons.
Japan, Mexico, Singapore and Australia have ratified or cleared the way to ratify soon. New Zealand, Chile and Vietnam are also on track to do so shortly, Bruce Christie, Canada’s CPTPP lead negotiator, told lawmakers last month.
“We would fully expect at this point that we will have six countries complete the ratification process by the end of the year, if not sooner,” Christie said.
Carr said a clause in USMCA known as 32.10 doesn’t stop Canada from pursuing further ties with China.