British Columbia and International Trade Agreement Negotiations

October 30, 2013Janel Quiring, Director International Trade Policy UnitMinistry of International Trade

Outline

• Why is trade important to British Columbia?

• Liberalizing trade and investment through the negotiation of trade agreements.

• Canada’s international trade agreements.

• Canada’s current international trade agreement negotiations and potential benefits for British Columbia.

Why is Trade Important to British Columbia?

3

• Trade fuels economic growth:

• Increased demand.

• Economies of scale.

• Imports.

• Economic growth maintains and generates employment.

• British Columbia is a small, open market economy that is reliant on trade and investment for economic growth and employment.

Trade Liberalization

• Trade liberalization improves the conditions for trade, leading to increased trade flows and economic growth.

• The negotiation of free trade agreements is a proven method of liberalizing trade and investment.

• TILMA and NWPTA.

Trade Liberalization and the NAFTA Experience

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$101.2

BC Exports to Mexico Since NAFTA

NAFTA

Trade Liberalization and the NAFTA Experience

$0

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$13.9

BC Exports to the United States Since NAFTA

NAFTA

Trade Liberalization and the NAFTA Experience

$0

$50,000,000,000

$100,000,000,000

$150,000,000,000

$200,000,000,000

$250,000,000,000

$300,000,000,000

$350,000,000,000

$276,145,000,000.0

Canadian FDI in the US

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$4,237,000,000.0

Canadian FDI in Mexico

Canada has implemented FTAs with these countries

Canada is in negotiation or exploration talks with these countries

Canada’s Free Trade Agreements

Canada-EU CETA

TPP

Canada-Japan EPA

Canada-India CEPA

Canada-Korea FTA

Ministry of International TradeTIB Service Plan

• Open markets and attract investment.

• British Columbia Trade and Investment Representatives in the US, Europe, China, India, Japan and Korea.

• Trade agreement negotiations are key to the Ministry successfully delivering its service plan.

Increase exports, develop international

partnerships and attract investments

Overseas offices

Investment attraction

Export development

Trade agreement

negotiations

Canada-EU CETA

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• On May 6, 2009, Canada and the European Union (EU) announced the launch of negotiations toward a Comprehensive Economic and Trade Agreement (CETA).

• The EU is the world’s largest single common market, foreign investor and trader with 27 Member States, a total population of over 500 million and a GDP of $17.4 trillion.

• A Canada-EU joint study indicates that an CETA could result in a 20% boost to bilateral trade and a $12 billion increase to Canada’s annual GDP.

Canada-EU CETABritish Columbia-EU Trade and Investment

11

• In 2012, the European Union ranked as the Province’s fifth largest export market with goods exports of $1.8 billion.

• BC services exports to the EU in 2011 amounted to $1.3 billion.

• The European Union is a significant source of foreign direct investment into the Province.

Canada-EU CETABenefits for British Columbia

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• Priority sectors: agrifoods (seafood), mining, forestry and clean technology.

• Negotiations objectives: • Reduce/eliminate tariff and non-

tariff barriers.• Improve access for BC services

exporters.• Open up government procurement

opportunities in the EU to BC vendors.

• Bilateral trade, job opportunities, government revenue and two-way investment all expected to dramatically increase.

Trans-Pacific Partnership

• Canada joined the Trans-Pacific Partnership (TPP) in October 2012.

• Combined economy of $27 trillion, nearly 35% of global GDP and 1/3 of global trade.

• A study by the Fraser Institute shows that the TPP could increase Canadian exports by $15.7 billion and result in income gains of $9.9 billion for Canada.

• Strategic agreement for Canada.

Trans Pacific PartnershipBritish Columbia-TPP Trade and Investment

• BC goods exports to TPP economies amounted to $18.9 billion in 2012.

• BC services exports to TPP economies amounted to $7.2 billion in 2011.

• BC is actively courting investment from TPP member economies in sectors such as mining and natural gas.

Trans Pacific PartnershipBenefits for British Columbia

• Priority sectors: forestry, agrifoods, technology, mining and natural gas.

• Negotiation objectives:

• Reduce/eliminate tariffs and non-tariff barriers.

• Improve access for BC services exporters.

• Improve investment protections and access.

• BC goods exports expected to increase.

Canada-Japan EPA

• Japan is British Columbia’s 3rd largest export market ($4.1 billion in 2012).

• Strong, long-standing trade and investment relationship.

• Priority sectors: Forestry, mining, agrifoods, natural gas, international education and technology.

• Negotiation objectives:

• Reduce/eliminate tariffs.

• Improve access for BC services exporters.

• Eliminate trade restrictive sanitary and phytosanitary measures.

Canada-India CEPA

• BC goods exports in 2012 - $322 million.

• India is one of the world’s fastest growing markets.

• Priority sectors: Forestry, mining, natural gas, agrifoods, international education, transportation and technology.

• Negotiation objectives:

• Reduce/eliminate tariffs.

• Improve access to government procurement.

• Improve access for BC services exporters.

Canada-Korea FTA

• Korea is BC’s fourth largest export market (BC goods exports in 2012 - $1.9 billion).

• Priority sectors: Forestry, agrifoods, mining, natural gas, international education, transportation and technology.

• Negotiation objectives:

• Regain market share.

• Reduce/eliminate tariffs.

• Improve access for BC services exporters.

• Eliminate trade-restrictive sanitary and phytosanitary measures.

British Columbia is a small, open market economy that is dependent on trade and investment for economic growth and employment.

The negotiation of trade agreements is a proven method of liberalizing trade and investment.

British Columbia supports Canada’s ongoing trade agenda, especially in BC Jobs Plan priority markets such as the EU, TPP, Japan, India and Korea.

Conclusion

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