The Mining Association of Canada (MAC) welcomes the announcement that Canada and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have agreed on the terms of this important trade agreement.
"Canada is a trading nation, our economy fundamentally buttressed by access to global markets. We strongly support Canada's participation in the CPTPP, and we are hopeful that the deal is signed in the near future. This massive trading block is not only important to our sector, which requires access to new and emerging markets, but for the Canadian economy writ large," stated Pierre Gratton, President and CEO, the Mining Association of Canada.
The members of the CPTPP represent 494 million people, with a combined GDP exceeding US$10 trillion, or 13% of global GDP. In recent years, Canada's exports of metals and minerals to CPTPP countries have been significant. Japan is Canadian mining's fourth largest export market, with total values exceeding US$3.4 billion in 2015. Through the reduction of tariffs, operators in Canada stand to gain significantly with TPP partners. For example, Japan currently applies tariffs on mineral and metal products of up to 7.9%, Vietnam of up to 40%, Malaysia of up to 50%, Australia of up to 5%, New Zealand of up to 10%, and Brunei of up to 20%.
Extending beyond tariff elimination and reduction, the negotiations also address numerous challenges that companies currently face in getting products, people, and services across borders on a day-to-day basis. As one of Canada's largest outward investing sectors, benefiting from the greater certainty, transparency and foreign investment protection that the CPTPP will enable is important for the mining industry to remain competitive on the global stage.
"The rest of the world continues to look to Canada as a leader when it comes to mining. Part of maintaining that global leadership is ensuring that Canada's mining and supply sectors have access to modern and comprehensive trade and investment vehicles to meet the world where it does business," stated Gratton.