British Columbia and
International Trade
Agreement Negotiations
October 30, 2013
Janel Quiring, Director International
Trade Policy Unit
Ministry 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?
•
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.
3
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
Millions of Cdn$
BC Exports to Mexico Since NAFTA
$400
$350
NAFTA
$300
$250
$200
$150
$100
$50
$0
$101.2
Trade Liberalization and the NAFTA Experience
Billions of Cdn$
BC Exports to the United States Since NAFTA
$25
$20
$13.9
$15
$10
$5
NAFTA
$0
Trade Liberalization and the NAFTA Experience
$276.1
$300
$250
Billions of Cdn$
Canadian FDI in Mexico
$350
$6
$5
$4
$4.2
$200
$3
$150
2010
2008
2006
2004
2002
2000
1998
2010
2008
2006
2004
2002
$0
2000
$0
1998
$1
1996
$50
1996
$100
1994
$2
1994
Billions of Cdn$
Canadian FDI in the US
Canada’s Free Trade Agreements
Canada-Japan
EPA
Canada-EU
CETA
Canada-Korea
FTA
Canada-India
CEPA
Canada has implemented FTAs with
these countries
Canada is in negotiation or exploration
talks with these countries
TPP
Ministry of International Trade
TIB 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.
Investment
attraction
Export
development
Increase exports,
develop
international
partnerships and
attract
investments
Overseas
offices
Trade
agreement
negotiations
Canada-EU CETA
• 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.
10
Canada-EU CETA
British Columbia-EU Trade and Investment
• 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.
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Canada-EU CETA
Benefits for British Columbia
• Priority sectors: agrifoods (seafood),
mining, forestry and clean technology.
• Negotiations objectives:
• Reduce/eliminate tariff and nontariff 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.
12
Trans-Pacific Partnership
•
Canada joined the TransPacific 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 Partnership
British 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 Partnership
Benefits 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.
Conclusion
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.
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