IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v7y2018i1d10.1186_s40008-017-0102-y.html
   My bibliography  Save this article

The impact of Trans-Pacific Partnership agreement on the Canadian economy

Author

Listed:
  • Kakali Mukhopadhyay

    (Gokhale Institute of Politics and Economics
    McGill University)

  • Paul J. Thomassin

    (McGill University)

Abstract

The Trans-Pacific Partnership is the most comprehensive trade agreement in the world. The TPP will help deepen Canada’s trade ties in the dynamic and fast growing Asia-Pacific region while strengthening existing economic partnerships with NAFTA partners and across Americas. The TPP will eliminate tariffs on almost all of Canada’s key exports and offer access to new opportunities in the Asia-Pacific region. Tariffs and other barriers on a wide range of Canadian products from various sectors will be reduced, including in agriculture and agri-food, fish and seafood, forestry and wood products, metals and mining and industrial goods. These benefits can only be derived if USA ratifies it. However, the US president has already signed a presidential memorandum confirming the US withdrawal from the TPP agreement. With this background, the current study evaluates the economic impacts of the Trans-Pacific Partnership agreements on the Canadian economy by the year 2030 using a global CGE framework. The study undertakes a number of simulations based on the level of tariff reduction across selected commodities between Canada and other TPP Nations. The GTAP 9 Data Base with the reference year of 2011 is used for the study. Results show that Canada stands to benefit significantly from improved access to the TPP region. Canada expects a considerable increase in agricultural export. Canola, processed food and beverages, seafood, beef and pork sectors are expected to benefit from the deal. Industrial goods like farming and construction equipment, metal and mineral, transport equipment, machinery would gain from TPP agreements. The agreement would help increase Canada’s manufacturing and exporting output. The banking sector is also expected to benefit from the deal. Additionally, a significant number of skilled and unskilled employment is likely to generate in Canada.

Suggested Citation

  • Kakali Mukhopadhyay & Paul J. Thomassin, 2018. "The impact of Trans-Pacific Partnership agreement on the Canadian economy," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-29, December.
    • Handle: RePEc:spr:jecstr:v:7:y:2018:i:1:d:10.1186_s40008-017-0102-y
    DOI: 10.1186/s40008-017-0102-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-017-0102-y
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-017-0102-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Angel Aguiar & Badri Narayanan & Robert McDougall, 2016. "An Overview of the GTAP 9 Data Base," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(1), pages 181-208, June.
    2. Rosenberg,Nathan, 1983. "Inside the Black Box," Cambridge Books, Cambridge University Press, number 9780521273671.
    3. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1727-1767.
    4. Nathan Rosenberg, 1963. "Capital Goods, Technology, And Economic Growth," Oxford Economic Papers, Oxford University Press, vol. 15(3), pages 217-227.
    5. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
    6. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    7. Chunding Li & John Whalley, 2012. "China and the TPP: A Numerical Simulation Assessment of the Effects Involved," NBER Working Papers 18090, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Itakura, Ken, 2019. "Incorporating Global Value Chains into the Dynamic GTAP Model [tentative results]," Conference papers 333111, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Khan, Aamir & Walmsley, Terrie & Mukhopadhyay, Kakali, 2019. "Trade Liberalization and Income Inequality: The Case for Pakistan," Conference papers 333125, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    4. Nelson Villoria & Rachael Garrett & Florian Gollnow & Kimberly Carlson, 2022. "Leakage does not fully offset soy supply-chain efforts to reduce deforestation in Brazil," Nature Communications, Nature, vol. 13(1), pages 1-10, December.
    5. Swati Dhingra & Rebecca Freeman & Hanwei Huang, 2023. "The Impact of Non‐tariff Barriers on Trade and Welfare," Economica, London School of Economics and Political Science, vol. 90(357), pages 140-177, January.
    6. Mun Ho & Wolfgang Britz & Ruth Delzeit & Florian Leblanc & Roberto Roson & Franziska Schuenemann & Matthias Weitzel, 2020. "Modelling Consumption and Constructing Long-Term Baselines in Final Demand," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 63-108, June.
    7. Rumiana Górska, 2022. "Sectoral effects of the Japan-EU Economic Partnership Agreement for the European Union countries," Asia Europe Journal, Springer, vol. 20(2), pages 99-114, June.
    8. Ken Itakura, 2020. "Evaluating the Impact of the US–China Trade War," Asian Economic Policy Review, Japan Center for Economic Research, vol. 15(1), pages 77-93, January.
    9. Bruno Lanz & Thomas F. Rutherford, 2016. "GTAPINGAMS, version 9: Multiregional and small open economy models with alternative demand systems," IRENE Working Papers 16-08, IRENE Institute of Economic Research.
    10. Taran Faehn & Gabriel Bachner & Robert Beach & Jean Chateau & Shinichiro Fujimori & Madanmohan Ghosh & Meriem Hamdi-Cherif & Elisa Lanzi & Sergey Paltsev & Toon Vandyck & Bruno Cunha & Rafael Garaffa , 2020. "Capturing Key Energy and Emission Trends in CGE models: Assessment of Status and Remaining Challenges," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 196-272, June.
    11. Paramita Dasgupta & Kakali Mukhopadhyay, 2017. "The impact of the TPP on selected ASEAN economies," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-34, December.
    12. J.A. Giesecke & R. Waschik & N.H. Tran, 2019. "Modelling the Consequences of the U.S.-China Trade War and Related Trade Frictions for the U.S., Chinese, Australian and Global Economies," Centre of Policy Studies/IMPACT Centre Working Papers g-294, Victoria University, Centre of Policy Studies/IMPACT Centre.
    13. Rodríguez, M. & Teotónio, C. & Roebeling, P. & Fortes, P., 2023. "Targeting energy savings? Better on primary than final energy and less on intensity metrics," Energy Economics, Elsevier, vol. 125(C).
    14. Dr. Markus Flaute & Dr. Christian Lutz & Martin Distelkamp, 2017. "Der Einsatz von MRIO zur Berechnung der Fußabdrücke von Nationen – eine Anwendung der EXIOBASE-Datenbank," GWS Discussion Paper Series 17-7, GWS - Institute of Economic Structures Research.
    15. Johannes Ziesmer & Ding Jin & Sneha D Thube & Christian Henning, 2023. "A Dynamic Baseline Calibration Procedure for CGE models," Computational Economics, Springer;Society for Computational Economics, vol. 61(4), pages 1331-1368, April.
    16. Jose Nuno-Ledesma & Nelson B. Villoria, 2019. "Estimating International Trade Margins Shares by Mode of Transport for the GTAP Data Base," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 28-49, June.
    17. Lee, Hiro & Itakura, Ken, 2013. "What Might be a Desirable FTA Path towards Global Free Trade for Asia-Pacific Countries?," Conference papers 332391, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. James A. Giesecke & Nhi H. Tran & Robert Waschik, 2021. "Should Australia be concerned by Beijing’s trade threats: modelling the economic costs of a restriction on imports of Australian coal," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 1-22, January.
    19. Enrica De Cian & Ramiro Parrado, 2012. "Technology Spillovers Embodied in International Trade: Intertemporal, regional and sectoral effects in a global CGE," Working Papers 2012.27, Fondazione Eni Enrico Mattei.
    20. Janine Dixon, 2017. "The Impact on Australia of Trump's 45 per cent Tariff on Chinese Imports," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 266-274, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:7:y:2018:i:1:d:10.1186_s40008-017-0102-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.