UOIT international business researcher comments on the Trans-Pacific Partnership and local jobs

Canada recently concluded negotiations on the Trans-Pacific Partnership (TPP), a new free-trade initiative between 12 countries. As the federal government moves toward approving the deal, members of Canada’s automotive sector are asking how the agreement will affect local employment. Dr. Terry Wu, an international trade expert at the University of Ontario Institute of Technology (UOIT), weighed in on this topic in a recent Oshawa This Week article.

The article, entitled Auto union warns of Durham job losses if Trans-Pacific trade deal signed, cited Durham Region union officials’ concerns over key concessions included in the TPP. While the 6,000-page deal gives Canadian companies access to the Japanese consumer market, it eliminates Canadian tariffs on Japanese vehicles. It has also been criticized for not offering the same level of protection for Canadian jobs as it does for jobs in the U.S.

Dr. Wu, Professor, Faculty of Business and Information Technology, agreed the federal government should be worried about the decline of manufacturing in Canada. A major concern is the lowering of domestic-content requirements for automobiles under the TPP. He pointed out that one-third of Canada’s exports are automotive-related, and the way the TPP is structured, an increase in those exports is unlikely. However, he noted other sectors, such as agriculture, could benefit from trade liberalization.

From a business perspective he noted Canada had no choice but to opt in to the agreement; otherwise it would face the risk of the U.S., Japan and other countries negotiating an agreement without taking Canada’s most important industries into consideration.

The TPP agreement includes the following countries:

• Australia
• Brunei
• Canada
• Chile
• Japan
• Malaysia
• Mexico
• New Zealand
• Peru
• Singapore
• United States
• Vietnam