A massive trade deal has been reached between twelve countries including Canada.
The Trans-Pacific Partnership, which would cover 40 per cent of the world’s economy if ratified was reached after five days of marathon talks in Atlanta, Georgia and proposes to eliminate barriers in a wide range of sectors.
The deal could lead to more Canadian exports of pork, beef, canola, high-tech machinery and a variety of other products, there are concerns that the dairy sector could see losses as a result of the deal, however the government says farmers will be compensated through a multi-billion-dollar series of programs.
Prime Minister Stephen Harper has already said that the federal cabinet has approved a plan to spend $4.3 billion over the next 15 years to protect farmers.
Other problems are also anticipated in the auto sector as more foreign car parts are likely to enter 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, that’s significantly down from the 62.5 per cent regional-content provision under NAFTA.
The deal has yet to be ratified in national parliaments, that won’t happen in Canada until after the October 19th federal elections.