> HOW THE TRANS-PACIFIC PARTNERSHIP AFFECTS CANADA’S INDUSTRIES

The auto industry The deal has raised concerns for Canada’s auto union and some auto-parts suppliers because it increases competition by lowering the barriers to entry. Earlier documents show the deal lowers the regional content required to cross the border duty free to 45 per cent for autos, down from the current 62.5 per cent, and to 40 per cent for auto parts, down from the current 60 per cent. But the full text reveals that for certain key stamped metal parts, the threshold will fall to 35 per cent, the Automotive Parts Manufacturers Association noted Thursday. On the upside, the agreement to eliminate Canada’s 6.1-per-cent tariff on imported vehicles within five years appears to be contained in a side deal with Japan, not in the main agreement, Automotive Parts Manufactures Association president Flavio Volpe wrote in an email. That raises the prospect Canada may be able to renegotiate those terms to bring it more in line with the U.S., which got 25 to 30 years to remove its tariffs on imported vehicles, Volpe wrote.

Dairy, eggs and poultry Dairy farmers say they could lose up to $246 million a year, or 4 per cent of their market, under the deal. The former Conservative government estimated dairy farmers would lose 3.25 per cent of their market. Other supply-managed products would also lose some market share, with chicken and turkey producers giving up 2 per cent and egg producers a bit more, the former government estimated. The Diary Farmers of Canada hope the Liberal government will honour the Conservatives’ commitment to create a $4.3billion fund to compensate the farmers.

Foreign takeovers Industry Canada will review buyouts of Canadian companies by TPP signatories if the deal is worth at least $1.5 billion; the current threshold is $600 million. The review uses a net-benefit-to-Canada test and also stipulates that state-owned enterprises within member countries can buy Canadian companies in deals valued up to $369 million without a review.

Whisky Side agreements between Canada and each of the TPP signatories would prohibit the sale of any product branded as Canadian whisky or Canadian rye whisky unless it has been manufactured in Canada.

Maritime control Canada reserves the right to adopt measures governing maritime activities in waters of mutual interest in areas such as pollution abatement, including double-hull requirements for oil tankers, safe navigation, barge-inspection standards and water quality.

Unprocessed wood A side agreement between Canada and Japan suggests controls on the export of B.C. logs remain in place. The agreement would maintain the two countries’ rights to settle log-export disputes under the

WTO agreement. It also calls for a bilateral forestry committee on forest products to help settle disagreements.

Food safety Canada and U.S. food and drug regulators will look at each others’ food-safety regulations. The provision may address concerns the TPP permits import of U.S. milk from cows treated with a growth hormone banned in Canada.

Biologics The deal appears to confirm eight years of exclusivity for biologic drugs, which are genetically engineered proteins derived from human genes. Trade representatives from the U.S. and Japan wanted up to 12 years of protection, while Australia and other nations said that would raise costs. Doctors Without Borders said the deal will “expand monopoly protections for the pharmaceutical industry at the expense of people’s access to affordable medicines.”

Temporary foreign workers Canada must grant temporary entry to professionals and technicians from TPP member countries without requiring labour certification as a condition of entry. The government will also issue work permits to spouses of the workers arriving under the TPP. The Canadian Workers Advocacy Group says Canada will be forced to grant permits to an unlimited number of temporary and often unskilled foreign workers from TPP countries who will take jobs from skilled Canadian workers.