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What we heard report: Public consultations on the General Review of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Introduction

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is Canada’s centrepiece free trade agreement in the Indo-Pacific region. It is in force between Canada and 10 other economies: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. On July 16, 2023, CPTPP Parties signed the Protocol on the Accession of the United Kingdom of Great Britain and Northern Ireland to the CPTPP which entered into force for the U.K., Australia, Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore and Vietnam in December 2024. For CPTPP Parties who have not yet ratified the Accession Protocol, it will enter into force 60 days following the date the Party deposits its notification of ratification.

The CPTPP is designed to be a dynamic and living agreement, evolving to maintain its high standards. To this end, the CPTPP text mandates that the Agreement be reviewed at least every five years; this is referred to as the “General Review.”

CPTPP Members endorsed the Terms of Reference for Conducting the General Review of the CPTPP on November 15, 2023, to guide the work on the General Review. This process includes the review of existing CPTPP provisions and disciplines and potentially making recommendations on how to update them. It also involves reviewing the operation of the CPTPP with a view to identifying ways to facilitate maximum utilization of the CPTPP by traders and investors.

The General Review is a collaborative process in which all CPTPP Members contribute to evaluating and refining the Agreement. To ensure that their contributions are well-informed, several member countries, including Canada, initiated public consultations to gather insights from their domestic stakeholders.

Summary of consultations

Global Affairs Canada conducted public consultations on the General Review of the CPTPP from June 3, 2024, to July 31, 2024. The focus of the consultations was to solicit a wide range of perspectives from Canadian businesses on the Agreement’s effectiveness, including ways to increase utilization across diverse groups such as small and medium-sized enterprises (SMEs), Indigenous Peoples, and women-owned businesses. The consultations also aimed to solicit suggestions on how the Agreement could be improved and/or modernized to enhance its relevance and impact, and to ensure that it remains the “gold standard” for trade agreements.

In total, Global Affairs Canada received 44 written submissions from Canadians across the country during the formal consultations period, including:

Figure 1. Written submissions received during the public consultations, according to stakeholder type

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The agri-food sector actively participated in this public consultation, contributing 52.3% of total submissions and 71.8% of all industry submissions.

Summary of feedback from Canadians

The government received feedback from Canadians regarding: 1) the functioning of the CPTPP and its existing provisions and disciplines; 2) ways to facilitate maximum utilization of the CPTPP by traders and investors; and 3) areas for potential updates and improvements to the Agreement.

Functioning of the CPTPP

The majority of respondents shared positive views on the impact of the CPTPP on Canada’s trade and investment interests since its entry into force, recognizing that the Agreement has facilitated improved market access and trade diversification in the Indo-Pacific region. The success of the CPTPP is attributed to its high standards and its science-based approach to Sanitary and Phytosanitary Measures (SPS), as noted by several agri-food stakeholders. About 13.6% of submissions indicated that the CPTPP had negative outcomes for certain sectors or that market access outcomes have not necessarily met the Agreement’s potential. These views were expressed by some stakeholders from the agri-food, textile-apparel, and construction sectors and were attributed to tariff rate quota (TRQ) policies, CPTPP rules of origin and origin procedures for textile and apparel, and treaty provisions involving temporary entry for business persons and labour commitments (Chapter 12 – Temporary Entry for Business Persons and Chapter 19 - Labour).  

Facilitating the maximum utilization of the CPTPP

On ways in which the Parties and the Government of Canada can enhance the utilization of the CPTPP by all groups, Canadians shared the following views:

Areas for potential updates and improvements to the Agreement

Regarding potential improvements to and modernization of the Agreement, Global Affairs Canada received a variety of constructive suggestions from Canadians related to different trade policy areas (see Figure 2). Over one-third of these suggestions focused on enhancing goods market access.

Figure 2. Top areas of interest identified in written submissions received during public consultations

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Amongst the comments received, some stakeholders expressed views about the allocation and management of TRQs, emphasizing their critical role in ensuring fair market access while protecting Canadian industries. There was also a clear call for revisions to the Electronic Commerce chapter to better align with the current realities of digital trade, reflecting advancements in technology and changing market dynamics. Additionally, participants highlighted the need for a well-designed Investor-State Dispute Settlement (ISDS) mechanism that prioritizes sustainable development, and ensures investment protections do not come at the expense of environmental and social considerations. The importance of maintaining the high standards of the CPTPP Agreement was also underscored when discussing the potential accession of new economies. Moreover, stakeholders raised concerns about the suspended intellectual property (IP) provisions, arguing that these hinder access to essential medicines, thereby affecting public health outcomes. Finally, we heard views on the impact of temporary entry provisions on the domestic labour market, with one stakeholder worried about how these measures might influence job opportunities for Canadians.

Feedback overview

Views from Industry

We heard from Canadian businesses from across a broad range of sectors, including:

Figure 3. Written submissions received during public consultations, according to industry sector

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Many businesses indicated a positive impact from the CPTPP Agreement on their growth, market diversification, and expansion into the Indo-Pacific region, attributing it to the significant reduction in tariffs and the Agreement’s progressive standards. However, some industries noted limited or even negative outcomes in market access in their sector due to challenges related to complex rules of origin, the administration of TRQs, burdensome import licensing, outcomes for skilled trades workers in Canada, and some other aspects of the Agreement.

While service providers generally expressed strong satisfaction with the negotiated provisions and their impact on the sector’s growth, several non-service industries emphasized the need for significant updates or revisions to the Agreement.

Agriculture and Agri-food

The government received a total of 21 submissions from business councils and associations in the agricultural sector, and 2 submissions from individual companies.

Overall, while recognizing the benefits of the CPTPP, a number of agri-food stakeholders emphasized that ongoing vigilance and adjustments are essential to address market access issues, uphold high standards, and protect Canadian interests, particularly in supply-managed sectors. They also underscored several key concerns and recommendations related to the General Review of the CPTPP:

Assessment and transparency: A number of agri-food stakeholders stressed that there is a need for better quantitative analysis and transparency regarding the CPTPP’s impact on the agri-food sector, including detailed trade balance data and sector-specific insights, to better understand market access outcomes and address barriers such as quotas and non-tariff barriers.

Accession and expansion: Several agri-food stakeholders expressed concerns over the U.K.'s accession to the CPTPP, indicating that it poses a risk to the Agreement's standards due to the U.K.’s non-science based SPS restrictions on Canadian agri-food exports to the U.K. such as beef and pork. They stressed that ensuring the U.K. complies with all CPTPP provisions is essential to maintaining the Agreement’s integrity. Consequently, these stakeholders recommended that, as Chair of the Commission in 2024, Canada should initiate future accession discussions only with economies who meet the Auckland PrinciplesFootnote 1 and ensure that expansion of the trade bloc does not dilute the Agreement’s standards.

Supply management: Stakeholders from Canada’s supply-managed sectors (dairy, poultry and eggs) consider it to be critical that the General Review of the CPTPP is not used as an opportunity to increase Canada’s market access concessions for these sectors. In stakeholders’ view, maintaining current access levels and ensuring no additional concessions for dairy, eggs, chicken, turkey and hatching egg sector TRQs are critical for protecting the Canadian sectors.

TRQ allocation and administration: Certain stakeholders call for changes to the allocation and administration of Canada’s CPTPP TRQs, which govern Canada’s supply-managed sectors. These changes should support broader distribution and competition, including better support for SMEs.

Regulatory and compliance issues: The sector stressed the importance of maintaining science-based standards for SPS measures and ensuring the reciprocity of production standards and food safety measures for both domestic and imported products.

Apparel and textiles

The government received three submissions from stakeholders in the apparel and textiles sector, highlighting that overly complex and difficult-to-understand rules of origin pose significant challenges for traders and hinder trade overall. To address these issues, they proposed amendments to the CPTPP concerning the existing rules of origin for apparel, including the following recommendations:

Financial services

The government received one submission from a stakeholder in the financial services sector, who expressed strong support for the CPTPP. They lauded the CPTPP for promoting streamlined regulatory procedures, transparency, and predictability, noting that these features create a framework that stimulates international competition and growth. The stakeholder also noted that the CPTPP has helped to develop international standards and expressed their support for the expansion of the Agreement, provided that new economies are willing and able to meet its standards.

Creative industries

The government received one submission from a stakeholder representing entities associated with the creative industries. The submission speaks on the importance of cultural expression and the challenges for the protection and promotion thereof within the context of the digital environment and international trade. The stakeholder emphasized the need to protect the creative industries from ongoing threats to cultural ecosystems, such as the rapid development of generative artificial intelligence. In the face of such threats, the stakeholder argued for stronger protections than that already provided in the side letters between Canada and each other Party to the CPTPP, though they remarked that the side letters were a very significant improvement over the Agreement itself. This protection, they posited, should take the form of a global exemption for culture from the CPTPP, or at least from the Electronic Commerce chapter. Failing either of these, they urged Canada to continue to sign side letters with all new CPTPP Parties to broaden the scope and achieve the widest cultural exemption possible.

Professional services

The government received one submission from a stakeholder in the professional services sector. The stakeholder expressed strong support for the CPTPP, lauding the Agreement’s facilitation of international mobility of licensed professionals. This feature, they exclaimed, captures the benefits of globalization for Canada’s economy while maintaining the high ethics, qualifications, and practice standards that govern professional service providers.  The stakeholder encouraged the Government of Canada to preserve the existing frameworks for international labour mobility as negotiated in the CPTPP.

Automotive

The government received one submission from a stakeholder in the automotive sector. They were supportive of the CPTPP as it provides access to a market of 580 million people while upholding stringent standards throughout the supply chain. They view the Agreement as a testament to Canada’s commitment to rules-based free trade, to which they claim the Canadian automotive manufacturing sector owes its existence. Their hope is that this approach persists as the Agreement grows.  

Technology

The government received two submissions from the technology sector which included recommendations for addressing issues related to digital trade and Canada's quantum sector.

Regarding digital trade, one of the stakeholders emphasized the need to upgrade the CPTPP's Electronic Commerce chapter to address current trade realities, particularly issues related to cloud computing, artificial intelligence, and cybersecurity, which can hinder digital trade. The stakeholder recommended that Parties consider not only updating existing provisions of the chapter, but also incorporating brand new provisions covering issues such as artificial intelligence, cybersecurity, personal information protection and online consumer protection in greater depth. Additionally, the stakeholder noted significant discrepancies in implementation of the Electronic Commerce chapter among CPTPP Parties, suggesting that well-performing Parties collaborate with others to improve implementation and ensure alignment of domestic regulations with CPTPP obligations.

In relation to digital trade, we also heard views that the CPTPP Electronic Commerce chapter should potentially either be deleted altogether or, if it remains part of the CPTPP, the provisions on cross-border data flows, data localization, source code, and non-discrimination should be deleted in keeping with more recent thinking about digital trade.

One stakeholder from the technology sector also recommended that Canada should consider how quantum technology and services could be incorporated into key provisions of the Agreement. They urged that Canada’s recent export controls measures on quantum trade need to be counterbalanced by supporting agreements amongst its trading and security allies to secure growth and development of Canada’s quantum sector. The stakeholder suggested that through the CPTPP, Canada should work to establish new cooperative agreements to facilitate greater access for Canadian quantum exporters to foreign government procurement opportunities amongst Canada’s like-minded, and trusted, trading partners.

Labour

The government received several submissions pertaining to labour. One stakeholder raised concerns about labour mobility and temporary entry, claiming that these provisions allow international workers to replace domestic skilled trades workers. They also argued that the ease with which companies can hire international workers suppresses wages for Canadian workers and weakens their bargaining power. Conversely, another stakeholder highlighted that labour mobility helps address labour shortages in sectors like healthcare and skilled trades.

In addition, one stakeholder recommended the prioritization of a worker-centered approach that benefits all workers from CPTPP Parties. They claimed that this could be achieved by meaningful engagement with unions in the future development and implementation of the CPTPP. The stakeholder recommended that, in any modernization of the CPTPP, the growth of unions is to be supported by, for example, specifying in the text that the freedom of association includes the right to organize and strike. Notably, the same stakeholder also advocated for the strengthening of obligations to bring them in line with those articulated in other agreements, such as the Canada-Ukraine Free Trade Agreement (CUFTA).

Finally, some stakeholders expressed concerns about the current framework for monitoring and enforcing compliance with labour obligations, suggesting the inclusion of a rapid-response mechanism (RRM) similar to that in the Canada-United States-Mexico Agreement. This mechanism, which exists between the United States and Mexico as well as between Canada and Mexico, addresses potential labour violations related to collective bargaining and freedom of association in a timely manner by conducting facility-specific reviews and ensuring compliance with national labour laws. The adoption of a similar mechanism in the CPTPP would, in the stakeholders’ view, provide greater effectiveness in resolving contraventions of labour rights and standards and provide an additional avenue to hold Parties accountable to their commitments.

Environment

The government received four submissions that shared views pertaining to the environment.

One stakeholder argued that the investment protection provisions in Chapter 9 - Investment of the CPTPP hinder government efforts to promote environmental policies and address the climate and biodiversity crises. The stakeholder called for the need to better align the Investment Chapter with the binding obligations in the Paris Climate Agreement through targeted revisions. The stakeholder suggested that this could include CPTPP Parties removing the ISDS mechanism due to concerns that it could lead to arbitration of policies that are made to safeguard critical areas of public interest, such as climate.  If ISDS cannot be fully removed from the CPTPP, some stakeholders proposed that Canada seeks side letters to disapply these provisions with as many CPTPP countries as possible. Alternatively, stakeholders suggested utilizing ISDS carve-outs provided for in the Agreement, which allow Parties to regulate to achieve legitimate public policy objectives, to enact policy measures related to fossil fuels and climate.

Separately, one stakeholder suggested that the investment chapter could be amended to allow third parties (e.g., representative of local communities) to join ISDS cases with full rights as a party. Doing so would enable third parties to attest to the impacts, environmental or otherwise, of investment projects on their communities.

Additionally, in a related context, another stakeholder urged the Government of Canada to seek improvements to the Environment Chapter in the CPTPP review to strengthen protections for the environment and align the chapter's language more closely with specific multilateral environmental agreements such as the Paris Agreement.

We also heard an opinion that more collaboration with the CPTPP Members is needed in areas like decarbonization of marine transportation, sustainable fishing and aquaculture, ocean health, clean technologies and clean energy, and naval defence and security.

Finally, one stakeholder emphasized that sustainability and climate measures must not be a barrier to free and fair international trade and should not be used as protectionist trade policies, regulations, and measures.

Intellectual property (IP)

The government received three submissions related to IP.

One stakeholder provided an in-depth commentary on the CPTPP’s IP provisions with reference to Canada’s IP regime and several international agreements pertaining to IP. The submission then notes consistencies and inconsistencies between the three sources in areas such as traditional knowledge, trademarks, and copyright.

In addition, two stakeholders took note of the negative impact of the currently suspended intellectual property provisions on access to medicines and advocated for their permanent deletion.

In a similar vein, one stakeholder argued that patent linkages maintain the high prices of originator medicines by postponing entry of affordable alternatives. As a result, they contended that patent linkages negatively affect access to medicines and should be removed or suspended.

Accession of new economies to the Agreement

About 39.1% of submissions expressed views regarding the potential accession of new economies to the Agreement. Of those, roughly two-thirds recognized the benefits of the Agreement and supported its further expansion, provided that the high standards of the Agreement are maintained. One stakeholder within this cohort made their support for accession contingent on Canada not permitting additional market access into supply-managed sectors.

On the other hand, one-third of the submissions pertaining to accessions expressed concerns that the high standards of the Agreement were being undermined by scientifically unjustified SPS measures imposed by the U.K. These stakeholders, though generally supportive of increasing market access for their products via accessions, cautioned that the U.K.’s accession would set an unfavourable precedent for future accession applicants. Fearing the erosion of the high standards of the Agreement, the Government of Canada was urged to ensure U.K. compliance with the CPTPP’s SPS Chapter and to remain steadfast in its demands with other accession applicants.

Inclusive trade

One submission emphasized that the CPTPP offers an opportunity to enhance inclusive trade, particularly through Canada's government proposing in the CPTPP review the comprehensive mainstreaming of gender-related and Indigenous-related provisions. The stakeholder recommended that the Government of Canada propose the inclusion of a separate and dedicated chapter on Trade and Gender in CPTPP, which would enforce the rights of women and gender-diverse people, making the F

Another stakeholder suggested that inclusive trade can be enhanced by broadening the scope of Canada’s procurement derogations (i.e., exceptions to the CPTPP procurement rules) to include racialized (e.g., Black-owned businesses), women and gender minority, and other equity-seeking groups.

Provincial and territorial governments

The government received submissions from four provinces and territories, which highlighted the importance of the CPTPP as a high-standard Agreement and acknowledged the positive impact it has had on their economic growth since its implementation.

One province/territory explicitly supported the expansion of the trading bloc, provided that the aspirant economy is willing and able to meet the high standards of the Agreement. The other provinces/territories did not comment on accession.

Three provinces/territories took the opportunity to voice concerns about deviations from the high standards of the Agreement. More specifically, one province/territory pointed to the lack of transparency in Vietnam’s SPS measures and explained how it creates challenges for Canadian exporters. They urged Canada to work with Vietnam and other CPTPP Members to resolve outstanding ambiguities. In addition, two provinces/territories pointed to the U.K.’s unscientific SPS measures that unwarrantedly limit the flow of Canadian beef and pork products into their market. One province/territory emphasized the need to maintain the integrity of the Agreement by ensuring compliance with its high standards and went on to note the danger in setting a precedent of non-compliance for aspirant economies. Building on this, the other province/territory urged Canada to advance implementation of the CPTPP’s SPS provisions, including the obligation on science and risk analysis. Collectively, all three provinces/territories advocated for a transparent, predictable, and science-based SPS regulatory environment.

In addition, three provinces/territories noted the need to prioritize utilization of the Agreement for Canadian businesses to fully leverage its benefits. In the pursuit of this goal, they recommended meaningful engagement with businesses to increase awareness of the opportunities in CPTPP markets. In addition, they recommended that Canada draw upon businesses’ experiences utilizing the CPTPP to identify gaps and areas for improvement. On this, one province/territory recommended improving customs procedures to reduce compliance costs, while another province/territory advocated for specialized training and funding programs to teach Canadian businesses how to export under the CPTPP.

Further, two provinces/territories implored the Government to carefully consider matters of provincial interest, such as supply-managed sectors, to ensure they remain protected under the CPTPP.

Finally, one province/territory noted that language barriers impede Canadian businesses’ access to government procurement opportunities abroad. The vague commitment to use English often results in tender notices and procurement documents being published in foreign languages, which does not facilitate market access. The province/territory urged Canada to advocate for member countries to publish their government procurement opportunities in English or French so that they can be more accessible for Canadian businesses.

Next steps

Despite the conclusion of the public consultation period, the Government of Canada continues to welcome views from Canadians on ways to improve and/or modernize the CPTPP Agreement. As Members continue to advance work on the General Review, which is expected to be completed in 2025, the feedback received from Canadians will help inform the Government’s positions and priorities.

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