International Trade Minister Francois-Philippe Champagne, who visited Prince Rupert’s Fairview Terminal in August 2017, confirmed the successful conclusion to the new Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) on Tuesday, Jan. 23. (Matthew Allen / The Northern View)

Rupert gateway to grow with Trans-Pacific Partnership

Elimination of tariffs and non-tariff barriers to trade among 11 countries to benefit port industry

Canada has agreed to a revised trade agreement with the Trans-Pacific Partnership, a deal that spells out growth for trade industries and the Port of Prince Rupert.

“This is very positive news for Prince Rupert as a gateway,” said Ken Veldman, director of public affair for the Port of Prince Rupert, who is also board director of the BC Chamber of Commerce.

International Trade Minister Francois-Philippe Champagne confirmed the successful conclusion to the new Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) on Tuesday, Jan. 23, after two days of talks in Tokyo, Japan. The agreement is expected to be signed by March.

The agreement will eliminate tariff and non-tariff barriers to trade among 11 members of the CPTPP, including Canada, Australia, New Zealand, Japan, Malaysia, Vietnam, Brunei, Chile, Mexico, Peru and Singapore. The U.S. withdrew from the partnership in Jan. 2017.

In time, the Port of Prince Rupert expects the deal will increase trade volumes that run through the gateway with both imports and exports.

“Let’s take a market like Japan, where we’re looking at significant possibilities in terms of improving exports in food products, wood products, where currently there are some significant tariffs,” Veldman said.

Vietnam and Malaysia also have high tariff barriers for Canadian trade to move into the market, he said. With the agreement, there is now the possibility of expanding into those markets.

This trade deal will open Canada to the third-largest economy in the world, Japan.

READ MORE: Canada, TPP agrees to revised deal without the United States

“There is also the import element. When you look at where import gains could be had, you start to look at things like automotive parts, for example, from Japan. A big portion of what is imported right now through containers into Prince Rupert are things like automotive products, this obviously lends back to where we have a real comparative advantage,” Veldman said.

The deal could mean increasing exports in food products, such as seafood, and wood products, which both have significant tariffs in Japan and Vietnam.

“In the forest industry, like Vietnam, a very important market for wood and paper, [there are] very high tariffs. Same with Malaysia. Even in Japan, a long standing market, still a 10 per cent tariff in Japan for wood products from there to Canada.

READ MORE: 5,400 new jobs expected through Port of Prince Rupert

“This is a really good news announcement and there’s some real potential to grow here,” he said. “It’s not that it’s going to happen overnight, but this is a good structural foundation increasing Asia-Pacific trade between North America and those countries.”

The government of Canada expects the trans-pacific agreement to boost the GDP by $4.2 billion by adding preferential access to 10 countries that represent 495 million people.



shannon.lough@thenorthernview.com

Like us on Facebook and follow us on Twitter

Port of Prince Rupert

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Heart of Our City: Ron Nyce

Teaching, dancing and encouraging culture create the heartbeat of this drummer

Breast cancer screening available in Prince Rupert – ten days only

Mobile imaging suite will be in Prince Rupert from July 6 to 16

RCSCC 7 – Captain Cook is searching for new C.O.

Officer position will be vacant with CIC sailing away to different shores.

Police investigate July 2 homicide in Houston

Man succumbed to injuries at Pearson Road residence

Solidarity movement displayed in city

Prince Rupert locals demonstrated against

Police issue warning after baby comes across suspected drugs in Kamloops park

The 11-month-old girl’s mother posted photos on social media showing a small plastic bag containing a purple substance

Collision results in train derailment just east of Golden

The derailment occurred Sunday night, according to a statement from CP

B.C. records 31 new cases, six deaths over three days due to COVID-19

There are 166 active cases in B.C., 16 people in hospital

B.C. highway widening job reduced, costs still up $61 million

Union-only project scales back work to widen Trans-Canada

Greater Victoria nanny pleads guilty to child porn, sexual interference charges

Johnathon Lee Robichaud pleaded guilty to slew of sex crimes

Victoria man dies after skydiving incident on Vancouver Island

34-year-old had made more than 1,000 jumps

Most Read