Canada Passes Federal Legislation to Implement CPTPP

October 25, 2018

On October 25th, the federal legislation to implement Canada’s obligations under the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) received royal assent. The next step is implementation at the regulatory and administrative levels, which ordinarily begins with the publication of proposed regulatory changes in the Canada Gazette – Part I for a period of public review.

Article 3 of the CPTPP text provides that the Agreement shall enter into force 60 days after at least six of the eleven signatories have ratified it. Formal ratification is accomplished by providing written notice to the CPTPP Depository in New Zealand that all internal legal procedures to implement the Agreement are complete. As of October 25th, four countries have ratified the CPTPP, including Mexico, Japan, Singapore, and New Zealand. Like Canada, Australia has recently passed federal legislation to implement the Agreement, and both countries are expected formally ratify in the near future. Currently, the other members of the Agreement are Brunei, Chile, Malaysia, Peru, and Vietnam.

The United States withdrew from the original form of the Agreement, the Trans-Pacific Partnership (TPP), on January 30th last year. In the absence of the United States, the preferential market access under the Agreement is expected to provide Canadian goods — particularly agricultural products — with a competitive advantage over US exports in important consumer and industrial markets in Japan and other CPTPP countries.

The CPTPP includes a provision that permits other countries to join in the future, after the Agreement has entered into force, and it is generally hoped that the United States may one day return to negotiate back into the deal.

Tereposky & DeRose LLP regularly provides advice on the interpretation, implementation, and application of the provisions of international trade agreements, including the CPTPP, the CETA, the NAFTA, and the forthcoming USMCA.  Should you have any questions regarding potential opportunities under these trade agreements or any other trade related issues, we are at your disposal.


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