By Cindy Macdonald
The Forest Products Association of Canada (FPAC) is pleased with the signing of the Trans-Pacific Partnership (TPP) as it could pave the way to further diversifying markets and expanding exports.
The comprehensive trade agreement reached with 12 countries was announced on Oct. 5.
“The forest products industry in Canada has always been one of the country’s major exporters and this agreement is an historic opportunity to improve access to rapidly growing markets in the Asia Pacific”, says David Lindsay, president and CEO of FPAC.
Significant tariffs on forest products still exist in several of the Pacific markets with tariffs of up to 10% on wood and other forestry products in Japan, while Vietnam applies tariffs of up to 31%, Malaysia of up to 40%, Australia and New Zealand of up to 5% and Brunei up to 20%.
Canada exports more than $22.6 billion/year to TPP countries and this is expected to grow because of the new trade deal.