Highlights: What's in the Trans-Pacific Partnership agreement?

The 12 nations involved in the Trans-Pacific Partnership talks have reached an agreement. What's in it for Canada? What impact could it have on our economy? View some highlights.

New deal would eliminate or reduce tariffs on many goods and services, open up dairy and auto markets

The auto industry is one of the key sectors in the Trans-Pacific Partnership deal reached Monday. Agriculture, pharmaceuticals, the digital economy and financial services are among other sectors that will be affected by the 12-nation agreement. (Geoff Robins/Canadian Press)

Here are some highlights of the 12-country Trans-Pacific Partnership agreement as described by the Canadian government Monday as it shared details of a deal to create the largest-ever regional trading bloc.

The full text has not yet released, and the agreement would need to be ratified by the parliaments and governments of all 12 countries to come into effect.

If implemented, the agreement could mean:

1. Eliminates, reduces tariffs

Elimination or reduction of tariffs on a broad series of products including pork, fruits, wines and spirits, canola, barley, machinery, minerals and forestry products. As one example, the beef industry expects to see exports triple to Japan, with a multi-year phase-out in tariffs there from 39 per cent to nine per cent.

2. Major changes for the auto industry

More foreign car parts likely entering Canada, likely benefiting producers and consumers but hurting some auto workers. Cars will be allowed without tariffs as long as they have 45-per-cent content from the TPP region.

Stephen Harper says auto sector has a brilliant future

8 years ago
Duration 3:46
Prime Minister Stephen Harper responds to questions on supply management and the auto sector after the Trans Pacific Partnership trade deal was announced.

That's significantly down from the 62.5 per cent regional-content provision under NAFTA, which mostly kept out pieces from places like China and Thailand. But the formula is more complex than that: the government says it will "encourage" producers to use Canadian ingredients, parts and materials when making goods exported to other TPP countries.

Justin Trudeau says he needs to examine the TPP before giving it his support.

8 years ago
Duration 4:09
Trudeau says the Liberals are pro trade but there is much to examine in the huge trans pacific trade deal

3. More foreign dairy products

Canada's protected dairy sector remains mostly intact. Currently, 10 per cent is set aside for foreign products. Now another 3.25 per cent share of imports would be allowed. An even smaller rate of imports will be allowed for supply-managed sectors including eggs, chicken and turkey.

Tom Mulcair says Harper selling out Canada

8 years ago
Duration 2:28
NDP Leader Tom Mulcair reacts to the TPP deal agreed upon today, and says that he will not be bound by the deal if elected as Prime Minister.

Farmers will be compensated for losses under the TPP and the recent Canada-EU deal, through a multibillion-dollar series of programs. The most important will see farmers paid up-front annually over 10 years to maintain 100 per cent income protection, and the program would taper off the five following years.

The program is worth about $4.3 billion. Smaller programs apply to quota-protection, modernizing equipment, and marketing assistance.

4. 'Buy American' provisions maintained

Buy American provisions won't disappear. The deal does not eliminate buy-local provisions for state- and municipal-level infrastructure projects. But it does simplify bidding for contracts with six regional U.S. power authorities, and also addresses sub-national procurement with some smaller countries.

5. Workers' rights

Better labour mobility for some high-skilled and business workers.

New workers' rights, including rules on child labour, forced labour and discrimination.

Interest groups have opposing views on TPP

8 years ago
Duration 2:08
Perrin Beatty, the President and CEO of the Canadian Chamber of Commerce, and Unifor National President, Jerry Dias have differing views on the Trans Pacific Partnership.

6. Longer patent-style protections for drugs

Next-generation pharmaceuticals, including cell-based biologics, will have patent-style protections for eight years. That's in line with Canadian policy, but will disappoint some countries who declared anything beyond five years would be unacceptably expensive for patients and taxpayers.

7. Protecting digital economy

Rules protecting the digital economy, and practices likes cloud computing. It would prevent national governments from cutting off data flows, by limiting laws that require local storage of data.

8. New rules around state-owned enterprises

State-owned enterprises will face more regulation. Companies backed by governments will have new transparency requirements and rules when competing with private companies. The government says cultural exemptions would protect the CBC and Telefilm Canada.

View an interactive graphic from The Canadian Press