Canada will sign controversial TPP trade deal, but ratification not certain

The mammoth Trans-Pacific Partnership (TPP) trade deal will be formally signed in New Zealand next month, marking the end of negotiations on the agreement, officials in Wellington said today.

“Signing is simply a technical step in the process”, Freeland wrote.

Saskatchewan’s trade minister, Jeremy Harrison, made it clear he feels the province would be better off with the TPO signed and ratified by Parliament.

“Just as it is too soon to endorse the TPP, it is also too soon to close the door”.

He says there would be a big downside if Canada is not part of the agreement because countries that sign on to the deal will have a huge competitive advantage.

The TPP was negotiated by the former Conservative government and the Liberals, under pressure from labor unions fretting about possible job losses, have launched wide-ranging public consultations.

Highline CEO Marcus Daniels told Business In Vancouver in November the agreement might be positive for many traditional Canadian industries in the resources sector but is “potentially risky for several innovation-driven sectors such as tech”.

The minister has already indicated the massive accord, which includes major economies such as the United States and Japan, can not be renegotiated.

TPP members will meet in New Zealand February 4 to sign the trade deal.

Freeland says each country has up to two years to consider ratification before making a final decision.

On October 5, twelve countries of the Pacific Rim region reached an agreement on the wording and subject matter of the TPP, meant to deregulate trade among the signatories, which make up 40 percent of the world economy.

“It is important to note that signing next week preserves Canada’s status as a potential full partner in the agreement, with all of the rights and powers that go with it”.

A group of researchers has released a paper that analyses the economics of the free trade deal, and they say the government should reconsider.

“The present analysis does indicate that the benefits of the TPP to the USA economy will greatly outweigh adjustment costs, and that economy-wide price and employment consequences will be limited”, Peterson said in the report, which noted that exports among all TPP nations would hit $1.025 trillion annually.