Overview of the CPTPP
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) offers Canadian beef and pork exporters preferential access and tariff reductions to key global markets.
Through this free trade agreement, Canada forms a trading bloc with 10 other countries that represent almost 500 million consumers and 13.5% of global GDP. So far, nine CPTPP signatories have ratified the Agreement:
- Canada
- Australia
- Japan
- Malaysia
- Mexico
- New Zealand
- Peru
- Singapore
- Vietnam
On December 30, 2018, the CPTPP entered into force between Canada and the first five countries to ratify the agreement (Australia, Japan, Mexico, New Zealand and Singapore). On January 14, 2019, the CPTPP entered into force between Canada and Vietnam, on September 19, 2021 the CPTPP entered into force for Canada and Peru, and on November 29, 2022 entered into force for Canada and Malaysia.
The remaining signatories are Brunei Darussalam and Chile. The CPTPP will enter into force 60 days after a signatory notifies the CPTPP Depository that it has completed its ratification procedures.
Snapshot of key markets and CPTPP outcomes by product
Sources for all: CPTPP Agreement; Statistics Canada - CATSNET Analytics.
Beer
There were no exports of Canadian beer to Australia, Japan, Mexico, Singapore or the rest of CPTPP in 2021.
Coffee
Note: This includes roasted and unroasted coffee as well as decaffeinated and regular/non-decaffeinated.
| Market | Canada's exports in 2021 (C$) | CPTPP tariff reductions and outcomes) |
|---|---|---|
| Australia | 3.9 million | Previously duty-free before the CPTPP. |
| Japan | 6.7 million | Decaffeinated coffee that is roasted or unroasted: Duty-free immediately. Tariffs were up to 12% before the CPTPP. |
| New Zealand | 1.9 million | Roasted, decaffeinated coffee: Duty-free immediately. Tariffs were up to 5% before the CPTPP. Unroasted, decaffeinated coffee: Previously duty-free before the CPTPP. |
| Vietnam | 578,110 | Unroasted, decaffeinated coffee: Tariffs have gradually been reduced from 20% to zero as of January 1, 2021. Roasted coffee that is caffeinated or decaffeinated: Tariffs have been gradually reduced from 30% to zero as of January 1, 2021. |
| Rest of CPTPP | 546,754 | Brunei Darussalam, Chile, Malaysia, Mexico, Peru, Singapore: CPTPP tariff reductions and outcomes will vary by market and product. |
Cranberry juice
| Market | Canada's exports in 2021 (C$) | CPTPP tariff reductions and outcomes) |
|---|---|---|
| New Zealand | 432,768 | Duty-free immediately. Tariffs were 5% before the CPTPP. |
| Rest of CPTPP | 134,639 | Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, Peru, Singapore, Vietnam: CPTPP tariff reductions and outcomes will vary by market and product. |
Grape wines, including icewine
| Market | Canada's exports in 2021 (C$) | CPTPP tariff reductions and outcomes) |
|---|---|---|
| Japan | 1.4 million | Sparkling wine: Tariffs will gradually be reduced from 182 yen per litre to zero by April 1, 2025. Sherry, port and other fortified wines in containers of two litres or less: Tariffs will gradually be reduced from 112 yen per litre to zero by April 1, 2023. Other wines in containers of two litres or less: Tariffs will gradually be reduced from up to 15% or 125 yen per litre to zero by April 1, 2025. |
| Singapore | 233,496 | Previously duty-free before the CPTPP. |
| Malaysia | 14,928 | Sparkling wine: Tariffs will gradually be reduced from up to 23 Malaysian ringgit per litre to zero by January 1, 2033. Other wines: Tariffs will gradually be reduced from up to 7 Malaysian ringgit per litre to zero by Jan 1, 2033. |
| Rest of CPTPP | 40,270 | Australia, Chile, Mexico, New Zealand, Peru, Vietnam: CPTPP tariff reductions and outcomes will vary by market and product. |
Spirits, including whiskies, vodka, and liqueur
| Market | Canada's exports in 2021 (C$) | CPTPP tariff reductions and outcomes) |
|---|---|---|
| Japan | 23.8 million | Whiskies: Previously duty-free before the CPTPP. |
| Australia | 7.7 million | Whiskies, vodka, liqueurs and cordials: Tariff of 5% has been eliminated. |
| Mexico | 179,325 | Previously duty-free before the CPTPP. |
| New Zealand | 179,325 | Whiskies: Previously duty-free before the CPTPP. Vodka: Duty-free immediately or previously duty-free. Tariffs on certain vodka products were as high as 5% or $0.50 per litre. Liqueurs and cordials: Duty-free immediately or previously duty-free. Tariffs were as high as 5% on certain products. |
| Rest of CPTPP | 179,325 | Chile, Malaysia, Peru, Singapore, Vietnam: CPTPP tariff reductions and outcomes will vary by market and product. |
Water without sugar, sweetening or flavouring
Note: This includes mineral and aerated waters, as well as other water beverages.
| Market | Canada's exports in 2021 (C$) | CPTPP tariff reductions and outcomes) |
|---|---|---|
| Japan | 503,881 | Mineral water: Duty-free immediately. Tariffs were 3% before the CPTPP. Other water: Previously duty-free before the CPTPP. |
| Rest of CPTPP | 74,514 | Australia, Brunei Darussalam, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam: CPTPP tariff reductions and outcomes will vary by market and product. |
Water and non-alcoholic beverages containing sugar, sweetening or flavouring (Excluding fruit and vegetable juices)
Note: This includes sports/energy drinks, non-alcoholic beer, and flavoured and sweetened waters.
| Market | Canada's exports in 2021 (C$) | CPTPP tariff reductions and outcomes) |
|---|---|---|
| Mexico | 2.8 million | Non-alcoholic beer: Duty-free immediately. Tariffs were 20% before the CPTPP. |
| Japan | 2.5 million | Non-alcoholic beverages with added sugar, such as sports/energy drinks, but not water, beer or fruit and vegetable juices: Tariffs will gradually be reduced from 13.4% to zero by April 1, 2023. Non-alcoholic beverages without added sugar, such as sports/energy drinks, but not water, beer or fruit and vegetable juices: Duty-free immediately. Tariffs were 9.6% before the CPTPP. |
| Chile | 213,172 | Non-alcoholic beverages, such as energy drinks, but not water, beer or fruit and vegetable juices: Previously duty-free before the CPTPP. |
| Rest of CPTPP | 1.0 million | Australia, Brunei Darussalam, Malaysia, New Zealand, Peru, Singapore, Vietnam: CPTPP tariff reductions and outcomes will vary by market and product. |
Additional information
Exporters looking for detailed information on all CPTPP outcomes and tariff reductions across all products and markets are encouraged to consult the Consolidated TPP Text, and the tariff schedules of Chapter 2 – National Treatment and Market Access for Goods, in particular.
Rules of origin, origin procedures and tariff rate quotas
Rules of origin
Rules of origin specify the amount of production that must be undertaken on a product in Canada, or a CPTPP market, for it to be considered “originating” and eligible for CPTPP’s preferential tariff treatment.
The rules of origin applicable to beverage products vary on a by-product and by-preparation basis. Exporters are strongly encouraged to research the specific rules applicable to their products and chosen export destination.
At a high-level, products that have undergone significant transformation in Canada, such as wine being produced in Canada from non-CPTPP grapes or grape juice, or non-CPTPP coffee beans being roasted and processed in Canada, would typically be considered originating.
However, there are exceptions, such for certain spirits, which require that the total alcoholic volume of non-CPTPP materials to not exceed 10 per cent of the alcoholic volume of the total alcoholic strength of that good.
Origin procedures
Origin procedures are used to administer the rules of origin and enable the trade community to take advantage of the preferential tariff treatment afforded under CPTPP.
Importers may seek preferential treatment under the agreement, based on a certification of origin completed by the exporter, producer or importer. The certification of origin does not follow a prescribed format, but is required to contain a minimum set of data. This data can be placed on any commercial document, including the invoice.
Customs officials may require an importer to provide supporting documents or other information to support the certification of origin. Upon written request by an importer, exporter or producer, CPTPP countries will issue an advance written binding ruling with respect to the tariff classification and originating status of a product prior to import.
Tariff rate quotas (TRQs)
Canadian exporters of certain products might benefit from preferential tariff treatment through tariff rate quotas. TRQs allow for duty-free entry or entry at reduced tariff rates for certain products up to a quantity specified by the destination government.
Japan has a range of TRQs applicable to food and beverage products, including for coffee and tea. Exporters are encouraged to consult Consolidated TPP Text – Appendix A: Tariff Rate Quotas of Japan for detailed information.
Additional information
Details can be found in the text of the CPTPP agreement:
- CPTPP agreement - Chapter 3 – Rules of origin and origin procedures
- Consolidated TPP Text – Annex 3-D – Product – Specific Rules of Origin
- CPTPP agreement – Chapter 5 – Customs administration and trade facilitation
Requirements and considerations when exporting to certain CPTPP markets
While the CPTPP expands global opportunities for Canadian companies through tariff elimination and preferential tariff treatment, exporters should note that the CPTPP does not change the import requirements set by each individual market. These may include, but are not limited to, labelling, packaging needs, the level of additives allowed, and others.
Before exporting to a CPTPP market, exporters are encouraged to work with their importer to understand the regulatory and market access requirements that may apply to their products.
Exporters should also consult the following resources should they have questions or require information on other potential impediments to trade that may be applicable to their products in one or more CPTPP countries:
- their industry association
- the Canadian Trade Commissioner Service, especially Trade Commissioners in their market of interest
- Agriculture and Agri-Food Canada’s Single Window for market access services, noted below
Support for exporters interested in CPTPP markets
Canadian exporters are also encouraged to take advantage of the following resources when they consider CPTPP opportunities:
- CPTPP for Agri-Food Exporters
- Find out what the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is and how it can benefit your exports to its markets.
- Single window for market access services
- Contact AAFC's Market Access Secretariat at aafc.mas-sam.aac@agr.gc.ca for questions about CPTPP or accessing one of its markets.