Trans-Pacific Partnership will benefit Canada’s mining sector
The Mining Association of Canada (MAC) expressed its firm support for Canada's participation in the Trans-Pacific Partnership (TPP).
"Canada's mining industry has been a strong advocate for liberalized trade and investment flows for many years," stated Pierre Gratton, MAC's President and CEO. "NAFTA, free trade agreements with Chile, Peru, Colombia, and other countries in Latin America, Africa, and Asia have all helped to increase Canadian exports and investment, supporting jobs for Canadians here and abroad. TPP, representing such a massive trade block, including critical emerging markets, is a trading partnership Canada must not risk being left out of."
The TPP is a multilateral trade negotiation that currently comprises 12 countries: the United States, Australia, Japan, Mexico, New Zealand, Singapore, Malaysia, Vietnam, Peru, Chile, Brunei Darussalam, and Canada. Together, these countries represent a market of nearly 800 million consumers and a combined GDP of $28.5 trillion – nearly 40% of the global economy.
Canada’s exports of metals and minerals to TPP countries were worth on average $158.6 billion per year from 2012 to 2014. Through the reduction of tariffs, operators in Canada stand to gain significantly with TPP partners. For example, Japan currently applies tariffs of up to 7.9%, Vietnam of up to 40%, Malaysia of up to 50%, Australia of up to 5%, New Zealand of up to 10%, and Brunei of up to 20%.
Extending beyond tariff elimination and reduction, the negotiations also address numerous challenges that companies currently face in getting products, people, and services across borders on a day-to-day basis. As one of Canada’s largest outward investing sectors – accounting for 10% ($81.5 billion) of the 2013 total – benefiting from the greater certainty, transparency and foreign investment protection that the TPP will enable is important for the mining industry to remain competitive on the global stage.
"The rest of the world looks to Canada as a leader when it comes to mining,” added Gratton. "Part of maintaining that global leadership is ensuring that the Canadian mining and supply sectors have access to modern and comprehensive trade and investment vehicles to meet the world where it does business."