Question Period Note: COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)

CPTPP's role in enhancing and diversifying trade opportunities for Canadian consumers and firms.

• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a cornerstone of Canada's engagement in the Indo-Pacific region, helping to create jobs, strengthen economic relations and boost Canada's trade with important trading partners.
• Overall, merchandise trade between Canada and CPTPP countries has been on an upward trend, growing by 20.4% in 2022 and a further 4.9% in 2023 with post-COVID and CPTPP ratification momentum.
• In addition to enhancing market access in vibrant Indo-Pacific markets, the CPTPP diversifies Canada's supply chains, reduces risk, costs and barriers, making Canadian exports more price-competitive.
• Canada supports, encourages and promotes rules-based, resilient and inclusive trade by actively engaging in the ongoing implementation and expansion of the CPTPP.
• The Costa Rica CPTPP accession process is an example of how the Agreement advances rules-based trade and open markets in the Indo-Pacific region and beyond. Canada looks to advance the discussions efficiently to deliver an outcome that benefits Canadians.

· Through a fully implemented Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada has preferential access to almost 600 million consumers, which will help to support, encourage and promote an open, rules-based international trading system. The CPTPP is in force for 12 countries -- Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and on December 15, 2024, the United Kingdom became a Party to the Agreement.
· The CPTPP is not in force between the U.K. and either Canada or Mexico. This is due to Canada and Mexico not completing their respective domestic ratification process of the Protocol of Accession. In accordance with the entry into force provisions, the CPTPP will come into force between Canada/Mexico and the U.K. 60 days after domestic ratification is complete.
· The CPTPP is designed to expand over time to include new members. China, Taiwan, Ecuador, Costa Rica, Indonesia, Ukraine and Uruguay have formally applied for CPTPP accession. In November 2024, during Canada's year as Chair of the CPTPP Commission, CPTPP Parties decided to establish a new Accession Working Group for Costa Rica's potential accession to the Agreement. In any accession, the applicant must demonstrate compliance with the high standard rules of the existing Agreement and provide meaningful market access.

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