CPTPP, CETA, USMCA… so many acronyms. What do they mean?
Well, for Canada, they mean an increasing global trade network, thanks to new deals with new foreign partners. And today, we’re going to help you learn what the acronyms mean.
The United States-Mexico-Canada Agreement (USMCA)
The USMCA is the new name for the renegotiated North America Free Trade Agreement (NAFTA) that was born in 1994. Since its implementation, NAFTA has doubled the amount of trade flowing between Canada and the U.S., and increased Canada-Mexico trade nine-fold. Representatives from all three countries began renegotiating NAFTA in 2016, to bring the agreement in line with the needs of the modern world. An agreement was reached in September, 2018, and was renamed the USMCA. You can learn more about NAFTA and the USMCA here. (UPDATE: The U.S., Mexico, and Canada signed the USMCA on Friday, November 30 in Buenos Aires; the agreement must now go before each country’s respective legislature for approval. U.S. tariffs on steel and aluminum – and Canada’s retaliatory tariffs – remain in effect.)
The Canada-European Union Comprehensive Economic Trade Agreement (CETA)
CETA was designed to strengthen economic relations and boost trade between Canada and the EU, the world’s second-largest market. CETA entered into force on September 17, 2017 and since Q4 2017 and Q2 2018, trade between Canada and the EU increased by 6.1 percent over the previous pre-CETA period. With CETA enacted, 98 per cent of EU tariff lines are duty-free for Canadian goods. Learn more about CETA here.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The CPTPP is a new free-trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. When CPTPP enters into force, it will be one of the world’s largest free-trade agreements, and offer access to key Asian markets. Japan, Mexico, New Zealand, Singapore, Canada and Australia ratified CPTPP by the end of October; with these first six signatories on board, this new agreement will come into force on December 30, 2018. (Learn more about the CPTPP here.)
Additionally, Canada is also pursuing new trade agreements with other partners (such as the Canada-MERCOSUR agreement with Argentina, Brazil, Paraguay, and Uruguay) and expanding its presence in other Asian markets. It’s truly an exciting time with increasing export opportunities.
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