The Mining Association of Canada (MAC) has indicated its support for Canada’s involvement in the Trans-Pacific Partnership (TPP) and has expressed that it will help Canada’s mining sector to remain competitive globally, supporting exports and investment.
The TPP is a trade negotiation between many Pacific Rim countries, with the aim to enhance trade and investment among the partner countries. This currently includes twelve countries: the US, Australia, Japan, Mexico, New Zealand, Singapore, Malaysia, Vietnam, Peru, Chile, Brunei Darussalam and Canada. These countries represent a market of nearly 800 million consumers and a combined GDP of $28.5 trillion – nearly 40% of the global economy. From 2012 – 2014, Canada exports of metals and minerals to TPP countries totalled on average CAN$158.6 billion/yr.
"Canada's mining industry has been a strong advocate for liberalised trade and investment flows for many years," commented Pierre Gratton, the MAC's President and CEO. "NAFTA, free trade agreements with Chile, Peru, Colombia and other countries in Latin America, Africa and Asia have all helped to increase Canadian exports and investment, supporting jobs for Canadians here and abroad. TPP, representing such a massive trade block, including critical emerging markets, is a trading partnership Canada must not risk being left out of."
The MAC indicated that through the reduction of tariffs, Canadian operations could significantly expand with TPP partners. For example, Japan currently applies tariffs of up to 7.9%, Vietnam of up to 40%, Malaysia of up to 50%, Australia of up to 5%, New Zealand of up to 10%, and Brunei of up to 20%.
The mining industry in Canada is one of the country's largest outward investing sectors – accounting for 10% ($81.5 billion) of the 2013 total. According to the MAC, the industry would benefit from the greater certainty, transparency and foreign investment protection that the TPP will enable and in turn help keep the mining industry competitive globally.
"The rest of the world looks to Canada as a leader when it comes to mining," continued Gratton. "Part of maintaining that global leadership is ensuring that the Canadian mining and supply sectors have access to modern and comprehensive trade and investment vehicles to meet the world where it does business."
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/mining/05102015/the-mining-association-of-canada-supports-canada-in-trans-pacific-partnership-2958/