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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?
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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.
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. Why is Trade Important to British Columbia?
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.
Canada’s Free Trade Agreements Canada-Japan EPA Canada-EU CETA Canada-Korea FTA TPP Canada-India CEPA Canada has implemented FTAs with these countries Canada is in negotiation or exploration talks with these countries
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.
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 CETA
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 CETABritish Columbia-EU Trade and Investment
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. Canada-EU CETABenefits for British Columbia
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 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.