Twelve countries, including Canada, have reached an agreement to create the Trans-Pacific Partnership (TPP) — the largest free trade zone in human history. Ivey faculty members share their insight on what the agreement means, and if it’s good or bad for Ontario and the country.
Professor David Sparling, Agri-Food Innovation and Regulation Chair, says the deal is good news for the country, as it will give Canadians greater access to the large Japanese market and rapidly growing markets, such as Malaysia and Vietnam.
Most Canadian consumer prices won’t change much, with the exception of the auto industry. The TPP allows cars to be sold without tariffs as long as they have 45 per cent content from the TPP region, lower than the 62.5 per cent regional content provision required in Canada under the North American Free Trade Agreement with the U.S. and Mexico.
Professor Mike Moffatt says the tariff elimination could reduce prices for Japanese cars by $1,000 or more. More international competition would likely make the industry more competitive and lower prices for consumers.
