The Canadian Dairy Industry

a. This agreement stands to benefit most countries due to the reduction in tariffs that will be seen. The Canadian agriculture sector stands to benefit from this reduction as it will give Canadian farmers access to Asian markets. It is estimated that due to this agreement Canada's agricultural exports could increase to as much as $75 billion annually by the year 2025 (Charlebois, 2018). Furthermore, the mining industry will also benefit from CPTPP. Currently, there are tariffs in Japan of up to 7.9% and 40% (The Mining Association of Canada , 2018) in Malaysia on certain mineral products produced in Canada. With the reduction and elimination of the tariffs Canadian miners will be able to send more competitively priced products to these countries.

The Dairy industry has been protected for years in Canada under supply management, which has allowed them to sell at high prices to Canadian consumers. However, the CPTPP removes some protectionist policies on dairy products which will allow imports to increase supply into the market, lowering prices Diary producers can charge. Canada's auto parts industry will also be potentially harmed from CPTPP. Currently, Canada's auto part manufacturers are required to use at least 60% (Volpe, 2018 ) of the material used in creating these parts from countries within NAFTA. The CPTPP however, requires that 30% (Volpe, 2018 ) of the material for the auto parts comes from CPTPP countries. As it stands, producers of auto parts sell products to both the US and the domestic Canadian market. Foreign producers will be able to supply the Canadian market with auto parts that are made cheaper under the CPTPP requirements whilst the domestic producers will still have to adhere to the more expensive NAFTA requirements in order to sell to the US. Domestic producers will be adversely affected by the CPTPP as they will have to compete with foreign producers who are able to capitalize on less stringent

Chinese companies would likely be negatively affected by the agreement. Chinese producers frequently trade goods and services in markets that were relatively protected, before the agreement. Chinese companies would have likely had a significant market share in these markets (Vietnam, Malaysia, Singapore), when the markets are opened Chinese companies will face increased competition and may result in lower profits. Chinese companies will also have to adhere to higher standards set by CPTPP in order to do business. The standards include environmental regulations, labour laws and competition rules. Chinese consumers will likely not see a lot of benefit from the CPTPP as China remains out of the agreement. Therefore, China may see companies that once benefited from economies of scale forced to remain in China and pass on higher costs to Chinese consumers. Chinese consumers will also not benefit from the higher competition that leads to lower prices and greater selection for Chinese