Trans-Pacific trade deal coming into effect December 30, 2018

December 10, 2018- Gatineau - The Government of Canada is updating its procurement rules to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which enters into force on December 30, 2018.

The CPTPP is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. It was signed on March 8, 2018, further to the January 30, 2017 notification from the United States of its intent not to ratify the Trans-Pacific Partnership (TPP). Once the CPTPP enters into force, it will be one of the largest free trade agreements in the world and will provide enhanced market access to Asia.

The CPTPP represents 495 million people with a combined gross domestic product (GDP) of CAD $13.5 trillion, or 13.5% of global GDP. This Agreement is expected to benefit Canada by boosting Canada's GDP by $4.2 billion, due to preferential access to the other 10 CPTPP countries. It provides suppliers of CPTPP countries with access to the government procurement markets of other CPTPP Parties.

Benefits for Canadian suppliers

When the CPTPP enters into force, Canadian suppliers will gain access to the government procurement markets of the other CPTPP countries. To access these markets, suppliers may refer to the Other Government Tender Sites page on Buyandsell.gc.ca, which has been updated to include links to the government procurement websites not only of CPTPP Parties, but also those of Canada’s other government procurement trading partners. For further assistance in navigating international markets, suppliers should contact Canada’s Trade Commissioner Service (TCS).

Updates to procurement procedures

For all procurements covered by trade agreements, including the CPTPP, Public Services and Procurement Canada (PSPC) is required to comply with specific procedures. The Department is currently updating procurement procedures, instructions and clauses to reflect Canada’s obligations under the CPTPP. These updates will ensure departmental policies are in compliance with the Agreement.

It is important to note that the CPTPP is expected to have a minimal impact on Government of Canada procurement activities, as the procedural rules and coverage align with Canada’s other international trade agreements, such as the World Trade Organization – Agreement on Government Procurement (WTO-AGP).

Further reading on the CPTPP

The Global Affairs Canada website provides the full text of the CPTPP as well as a comprehensive overview of the CPTPP. Additional details on government procurement can be found in the CPTPP government procurement summary.

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