Leverage Global Trade Agreement
In recent days, international traders have added a new tool to their arsenal with the implementation of the Canada-United States-Mexico (CUSMA) Agreement. This retains the fundamental benefits of the North American Free Trade Agreement (NAFTA) and enables Canada to have free-duty market access to $294.5 billion in industrial goods exports and $87.4 billion in energy export as well as $21.2 billion in agricultural, fishing & forestry export to both the U.S and Mexico.
For global traders, it is critical to pay attention to all of Canada’s trade agreements and partnerships to take advantage of duty-free or low tariffs in emerging markets. For example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is one of the largest Free Trade Agreements in the world, including 11 countries with a population of 500 million people and a combined GDP of $13.5 trillion representing 13.5% of global GDP. The CPTPP is estimated to generate significant economic benefits for Canada, a $4.2B GDP gain under the CPTPP versus $3.4 billion under the Trans-Pacific Partnership (TPP). In three specific markets, namely; Japan, Malaysia & Vietnam which account for 61% of total Canadian agri-food exports to the CPTPP region, the tariffs in the range of 31% to 92% are completely eliminated.
In addition, it’s important to review and leverage trade agreements for potential regions such as Canada And India Comprehensive Economic Partnership Agreement (CEPA), The Canada-Korea Free Trade Agreement (CKFTA) and the Canada-CARICOM Free Trade Agreement.
Besides reduction in tariffs, trade agreements also enhance cooperation and transparency on non-tariff barriers, including sanitary and phytosanitary measures as well as plant health and safety. It is undeniable that these trade agreements play vital roles in the Canadian economy, boosting job creation and long-term stability, especially after the global pandemic, Covid-19.
On this journey, partnership & collaboration are always critical for manufacturers & exporters. With a great deal of expertise and a broad network in both local & international markets, we are Warehouse Transport Group. Our CEO Ryan Burrowes is very pleased to be your partner, to help add value to your business and grow together.