Tentative trade deal reached

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Exactly two weeks before election day the Conservative government has signed on to a blockbuster trade deal giving Canadian companies access to an estimated 800-million people. The Trans-Pacific Partnership is a 12 nation trading agreement that’s being touted as the largest of its kind. Some details of the tentative agreement were released today and numerous industries in Canada will be affected.

While the details of the deal are going under legal review, it didn’t stop people from speculating how this will affect certain industries do business because their market size just quadrupled and that’s both good and bad for some.

If approved, exporters of beef, pork and barley would get tariff-free access to countries like Japan, the world’s 3rd largest economy. On the flip side, foreign dairy farmers will gain access to another 3.25% of the Canadian market over 5 years. Ottawa says it’ll invest $4.3 billion over 15 years to make up for lost revenue for dairy, chicken and egg farmers.

Dairy farmers of Ontario had this to say: While DFO clearly advocated for no additional access for any foreign dairy, it respects that the additional access was a favourable outcome in the circumstances. We are optimistic that the protection programs for producer income, quota, and industry investment will continue to protect and defend supply management.

The deal makes Canadian auto-parts manufacturers nervous. Removal of tariffs and reduction of the requirements of Canadian parts in vehicles means tougher international competition. But Stephen Harper says Canadian automakers are in good hands, “we will also be announcing shortly, measures to attract new auto investment in Canada to ensure long term stability and assembly operations here in Canada.”