Question Period Note: PEOPLE'S REPUBLIC OF CHINA INTEREST IN ACCESSION TO THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)

The People's Republic of China (PRC) has publicly expressed interest in further exploring CPTPP accession.

• Canada is committed to diversifying trade and investment ties across the Asia-Pacific.
• Canada welcomes interest in accession from an economy that can demonstrate its ability to meet and comply with the high standard rules and ambitious market access commitments of the CPTPP.

• The CPTPP is an ambitious and high-standard free trade agreement covering all aspects of trade and investment, including disciplines that have not been featured in any of People's Republic of China's previously concluded trade agreements.
• This includes disciplines on labour, environment, electronic commerce, state owned enterprises and intellectual property, with which the People's Republic of China, like any interested economy, would have to comply.

• Canada would work with other CPTPP parties to evaluate any application for accession and ensure that any decision taken by the parties would be in the best interests of Canadians.

· The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trading block that covers roughly 500 million people with a combined gross domestic product of CAD $13.5 trillion - a full 13.5% of global GDP. Through the CPTPP, Canada has preferential access to half a billion consumers in some of the world's most dynamic and fast-growing markets, which will strengthen Canadian businesses, grow the economy, and create more well-paying jobs for middle class Canadians.
· The CPTPP entered into force for the first six countries to ratify the Agreement - Australia, Canada, Japan, Mexico, New Zealand, and Singapore - on December 30, 2018, and for Vietnam on January 14, 2019. For the remaining signatories (Brunei, Chile, Malaysia, and Peru), the CPTPP will enter into force 60 days after that country ratifies the Agreement.
· On November 20, 2020 at the APEC Leaders' Meeting, the People's Republic China (PRC) President Xi Jinping indicated China will give “positive consideration” to joining the CPTPP. This followed Xi's November 3rd statement that China will “pursue deeper bilateral, multilateral and regional cooperation” and “to conclude high-standard free trade agreements.”
· The PRC has expressed interest in discussing the CPTPP and the accession process with Canada, but technical discussion have not yet taken place.
· All decisions on accessions will be made by consensus among the CPTPP parties. Aspirant economies will be required to meet and comply with all of the CPTPP's high standard rules and ambitious market access commitments and to successfully negotiate accession terms with all CPTPP parties. The CPTPP includes disciplines in areas such as Government procurement, State-owned enterprises, labour, environment and E-commerce that have not featured in China's trade agreements to date. Some of these disciplines may be difficult for China to meet.
· The CPTPP is designed to expand to include new countries. Taiwan, Thailand, South Korea, the Philippines and the U.K. have all publically expressed interest in accession, and at this time only the U.K. has submitted a formal application.

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