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June 19, 2012
G20: Canada to join Pacific Region trade agreement, Stephen Harper confirms
Prime Minister Stephen Harper announced Tuesday that Canada has made a major trade breakthrough by joining 10 countries putting together a Pacific-area free-trade deal.
As part of its effort to bolster Canada’s economy through trade, the Harper government has been seeking admission to the Trans-Pacific Partnership negotiations for months. But the process was held up by concerns among the other trade partners about Canada’s agricultural protectionist measures and copyright policies.
“Opening new markets and creating new business opportunities leads to jobs, growth and long-term prosperity for all Canadians,” Harper said in a statement. “A TPP agreement will enhance trade in the Asia-Pacific region and will provide greater economic opportunity for Canadians and Canadian businesses.”
Harper announced admission to the TPP after a meeting Tuesday morning on the fringes of the G20 summit with United States President Barack Obama, whose endorsement was considered crucial for Canada’s participation in the TPP talks.
The TPP negotiations include the U.S., Australia, New Zealand, Singapore, Chile, Peru, Vietnam, Malaysia, Brunei and Mexico, which announced participation on Monday. Altogether, the TPP trade area will comprise 658 million people and total annual economic output of $20.5 trillion.
New Zealand officials said Monday that the group was preparing to admit Canada to the talks.
With Canada and Mexico, the agreement would create the U.S.’s largest trade accord, linking three members of the North American Free Trade Agreement with eight Pacific-region nations. For now, the parties have taken no action on Japan’s request to participate. Ford Motor Co., General Motors Co. and Chrysler LLC have led opposition to Japan’s participation, saying the nation’s auto market needs to be more open to international competition.
Mexico and Canada as part of the multilateral agreement would benefit manufacturing supply networks already in place in North America, Eric Farnsworth, vice president of the Council of the Americas in Washington, said yesterday in an interview after Mexico’s invitation was announced. The New York-based organization promotes open markets in the Western hemisphere.
Trade in merchandise among Canada, Mexico and the U.S. reached $1 trillion in 2011 for the first time, Obama said at an April 2 press conference. Total U.S. trade in goods with Canada reached $596.2 billion, resulting in a $34.5 billion U.S. trade deficit with its northern neighbor, according to the U.S. Census Bureau. U.S. goods trade with Mexico, which trails Canada and China, was $461.2 billion.
The agreement is expected to encompass traditional issues including agriculture and intellectual property, as well investment and protections for businesses that compete against state-owned enterprises, according to the U.S. Trade Representative’s office.
The Obama administration must first notify Congress of its intent to include additional countries in the talks, followed by a 90-day consultation period with Congress.
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