Question Period Note: UNITED KINGDOM ACCESSION TO THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)

About

Reference number:
AAFC-2023-QP-00096
Date received:
Nov 22, 2023
Organization:
Agriculture and Agri-Food Canada
Name of Minister:
MacAulay, Lawrence (Hon.)
Title of Minister:
Minister of Agriculture and Agri-Food

Issue/Question:

Q1 - What is being done to address non-tariff barriers for beef and pork into the UK market? Q2 – How does the accession affect market access for supply-managed products from the UK?

Suggested Response:

R1 - The Government of Canada has heard the concerns of Canadian beef and pork stakeholders, and we continue to engage with the UK in multiple fora to improve the situation.

While Canada secured improved duty-free quota access in the negotiations for the UK’s accession to the CPTPP, we know beef and pork exporters continue to face important challenges in exporting to the UK market.

Canada is pressing for the UK to focus on science-based regulations and comply with its international trade obligations.

Officials continue to engage with the UK in technical work to address trade irritants in the agriculture sector, including for Canada’s beef and pork producers. R2 - Consistent with the Government of Canada’s commitment, we will not be providing additional market access for supply-managed products through this accession. Our government will always stand up for our dairy, poultry and egg farmers, and a strong supply management system in Canada.

We will continue to honour the clear commitment to not provide any additional market access in our supply-managed sectors in any future trade negotiations.

Background:

As of July 12th, 2023, the agreement has been ratified, implemented and is in force for all 11 original CPTPP signatories (Canada, Australia, Japan, Mexico, New Zealand, Singapore, Vietnam, Peru, Chile, Malaysia and Brunei).

On February 1, 2021, the UK was the first economy to formally submit its request to accede to the CPTPP. Subsequently, six other countries have formally requested accession to the CPTPP: China, Taiwan, Ecuador, Costa Rica, Uruguay and Ukraine. CPTPP Parties decide, by consensus, whether to approve accession requests and enter into negotiations with these aspiring economies.
Between March 12 to April 27, 2021, Canada held public consultations on a Canada-UK bilateral FTA and the UK’s possible CPTPP accession. Agriculture stakeholders raised a number of concerns with respect to sanitary and phytosanitary market access issues with the UK including those impacting beef, pork, grains, and oilseeds. In addition, Canada’s dairy, poultry, and eggs stakeholders requested that Canada not expand TRQ volumes beyond existing levels or otherwise agree to additional market accession concessions, such as reducing over-quota tariffs.
CPTPP Parties began negotiation with the UK on June 1, 2021 and announced substantial conclusion of those negotiations during a ministerial meeting on March 30, 2023.
Canadian exporters will benefit from additional goods market access to the UK under the CPTPP compared to the Canada-UK Trade Continuity Agreement (TCA) via additional duty-free tariff rate quota volumes for beef and pork, and immediate duty-free, quota-free access for sweetcorn. In addition, Canada will receive preferential treatment for poultry and eggs, which are excluded under the TCA.
In return for the UK’s tariff commitments under the CPTPP, Canada will provide the UK with volume-limited TRQ access for UK beef into Canada, as well as access to the rest of its CPTPP tariff commitments, including Canada’s existing CPTPP tariff rate quotas for dairy, poultry and eggs, without expanding any of the existing quota volumes.
While ensuring that adherence to the obligations of the CPTPP SPS Chapter was a priority for Canada, other CPTPP Parties prioritized issues other than SPS in the accession negotiations. Without a critical mass of support amongst the CPTPP Parties, it was not possible for Canada on its own to address SPS issues with the UK.
Beef and pork stakeholders have publicly stated dissatisfaction with the results of the accession negotiations due to the UK’s application of unjustified and unnecessary SPS measures which they have retained from the EU that prevent viable commercial access. The sector has called on the Government of Canada to ensure the bilateral FTA provide fair access for Canadian red meat exports. If that fails, these stakeholders are asking Parliament to provide fair compensation.
While the Canada-UK bilateral FTA negotiations continue, Canadian Food Inspection Agency officials are also engaging in technical work with the UK to seek to address trade irritants to market access.
On July 16,,2023, CPTPP parties officially signed the accession protocol for the UK to join the agreement during a ministerial signing ceremony in Auckland, New Zealand. Each of the existing 11 CPTPP parties and the UK will now undertake their domestic ratification procedures to bring the UK’s accession to the CPTPP into force.

Additional Information:

• The CPTPP is a success story for Canadian agriculture and agri-food exporters, opening up access in many thriving markets in the Indo-Pacific region.

• The addition of the UK, a G7 economy, makes the CPTPP even stronger and advances our shared commitment to open, predictable and inclusive rules-based trade.

• With the UK’s accession to the CPTPP, Canada secured additional duty-free volumes into the UK for pork and beef, as well as unlimited access for sweetcorn, turkey, and eggs.

• The CPTPP, with the UK included, now accounts for roughly 15.6% of the global economy and nearly 580 million consumers.