Trade Liberalization In Canada

Studies have shown that through trade liberalization, producers in countries will specialize, employing more people, creating the economic growth to provide more services and investments into their communities. In this case virtually all export-oriented industries in Canada will benefit from the increase in aggregate demand (access to a market of 800 million). Canada’s fishing industry has contributed more than $2.3 billion to Canada’s GDP in 2014 and employs thousands of people in 1,500 rural communities. As the world’s eighth-largest exporter of fish and seafood products, Canada currently faces trade barriers in TPP countries such as Japan and Malaysia (15 percent in tariffs), Vietnam (34 percent in tariffs) and New Zealand (5 percent

Some have said that the secrecy and the negotiations that are happening behind doors allude to a deal that is against the public interest. Although the Department of Foreign Affairs, Trade and Development has consulted with thousands of stakeholders, numerous industries, provinces, unions, and other groups during the negotiations. Nevertheless, trade deals have never been negotiated in public because it can hurt any strategic calculations; in other words it is important to make sure your competitor does not know what cards one has. The second criticism placed against the TPP is that international tribunals through investor-state dispute resolutions (ISDS) will undermine state sovereignty. The common belief is that corporations will have the ability to overrule Canada’s judicial system (courts) and our legislature. TPP regulations with regards to ISDS are very similar to NAFTA and CETA. It is a standard feature of modern trade agreements to ensure the government does not expropriate investments, ensures minimum standard of treatment especially in a non-discriminatory manner – foreign and domestically. Another criticism about the TPP is that Canada will ship jobs overseas. Some claim corporations will be able to harm worker’s rights and because of lower working conditions, re-locate. The deal will in fact do the opposite, banning child labour, forced labour, unsafe working environments, and discrimination. There are provisions in the deal that ensure labour conditions in the 12 countries are up to international standards. Of course some sectors of Canada’s economy will have a comparative advantage, which will increase the economy’s productivity in the long-run, but there will also be difficult adjustments for some workers who face a skills shortage. Lastly, many claim that generic drugs will be more expensive. The reality is that patent-style protections in the TPP will last for eight years