Canada To Ratify the Trans-Pacific Trade Partnership

Updated on Monday 05th November 2018

The Trans-Pacific Trade Agreement is expected to enter into force before the end of 2018 which is why Canada was among the first western countries to speed up the ratification procedure. The treaty comprises 12 countries with access to the Pacific Ocean, hence the name The Pacific Rim Trade Deal, and is one of the most important recent agreements which enhances Canada’s trading relations with worldwide countries. Our Canadian company formation agents can help foreign investors who want to open companies in the trading sector in this country.

Canada filed the notice for ratification at the end of October

The Trans-Pacific Trade Agreement is nothing but the renewed Trans-Pacific Partnership (TTP) after the USA withdrawing from the former deal. In order to become effective, the new agreement must be ratified by at least 11 of the 12 countries signing it. This is why Canada sped up the process and filed for ratification at the end of October.

As one of the most important participants to the TTP, Canada wanted to underline the importance of trading relations between economies around the world which is why it filed the notice for ratification with New Zealand – the depository state and one of the signatories of the deal, which also oversees the implementation of the agreement.

Canada has signed various trade deals over the years which helped it improve its economic relations and attract a great number of foreign investors over the years. Our local consultants can advise foreign businessmen interested in setting up a company in Canada.

New trading markets for Canada

Among the countries which have already ratified the agreement are Japan, Singapore, Mexico, and New Zealand, with Canada being the 5th state filing for ratification.

The TTP is very important for Canada’s economy as it will help develop new economic relations with other countries while improving the existing ones. Among these, the trading relations with Japan are very important to Canada with which Canada had no bilateral trade agreement.

The deal is also very important for Canadian exporting companies which will save up 430 million USD from exports to Japan, Vietnam, and Australia.

For detailed information on how to establish a business in Canada, please feel free to contact our local advisors.