CPTPP benefits for Canadian beef and pork exporters
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, seven CPTPP signatories have ratified the Agreement:
- New Zealand
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.
The remaining signatories are Brunei Darussalam, Chile, Malaysia and Peru. 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.
Beef and beef products
Note: This includes fresh, chilled and frozen cuts of beef, as well as edible bovine offal, such as frozen organs.
|Market||Canada's exports in 2019 (C$)||CPTPP tariff reductions and outcomes)|
|Japan||354.2 million||Most fresh, chilled, and frozen beef cuts: Tariffs will gradually be reduced from 38.5% to 9% by April 1, 2033. Certain bovine offal: Tariffs will gradually be reduced from up to 50% to 9% by April 1, 2033.|
|Mexico||128 million||Fresh or chilled, and frozen beef cuts, as well as bovine offal: Previously duty-free before the CPTPP.|
|Vietnam||8.1 million||Fresh, chilled, and frozen beef cuts: Duty-free. Tariffs were up to 31% before the CPTPP. Certain bovine offal: Tariffs will gradually be reduced from 10% to zero by January 1, 2022.|
|Peru||1.2 million||Fresh, chilled, and frozen beef cuts: Upon Entry into Force of the Agreement (EIF), tariffs will gradually be reduced from 17% to 0% within 11 years. Fine cuts of fresh or chilled beef (HS 0201.30.00.10): Duty-free upon EIF. Certain bovine offal: Previously duty-free before the CPTPP.|
|Rest of CPTPP||375,190||Australia, Brunei Darussalam, Chile, Malaysia, New Zealand: Duty-free upon EIF, or previously duty-free.|
Pork and pork products
Note:: This includes fresh, chilled and frozen cuts of pork, processed pork products such as hams, sausages and lard, and edible swine offal, such as frozen organs.
|Market||Canada's exports in 2019 (C$)||CPTPP tariff reductions and outcomes)|
|Japan||1.4 billion||Japan uses a “gate price system”, requiring that all pork product imports meet a specific, government-set reference price. Any pork product that enters Japan at below this price is subject to paying the difference between import price and “gate price”, in addition to any import tariffs. Fresh, chilled or frozen pork, as well as certain swine offal that enter at an over-gate price: Tariffs will gradually be reduced from 4.3% to zero by April 1, 2027. Pig fat: Duty-free. Tariffs were 6% before the CPTPP. Sausages and similar products: Tariffs will gradually be reduced from 10% to zero by April 1, 2023.|
|Mexico||281.7 million||Fresh, chilled or frozen pork, as well as certain types of processed pork and pig fat: Previously duty-free before the CPTPP.|
|Australia||36.6 million||Fresh, chilled or frozen pork, as well as certain types of processed pork and pig fat: Previously duty-free before the CPTPP. Sausages and similar products: Duty-free. Tariffs were 5% before CPTPP.|
|New Zealand||35.3 million||Fresh, chilled or frozen pork, certain types of swine offal, certain types of processed pork, pig fat, and others: Duty-free upon EIF, or previously duty-free.|
|Vietnam||25 million||Fresh or chilled pork: Tariffs will gradually be reduced from 27% to zero by January 1, 2027. Frozen pork cuts: Tariffs will gradually be reduced from 15% to zero by January 1, 2025. Certain swine offal: Tariffs will gradually be reduced from 8% to zero by January 1, 2022. Pig fat: Tariffs will gradually be reduced from 10% to zero by January 1, 2025.|
|Rest of CPTPP||73.4 million||Brunei Darussalam, Chile, Malaysia, Peru and Singapore: CPTPP tariff reductions and outcomes vary by market and product.|
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 beef and pork 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 destinations.
Fresh, chilled and frozen beef and pork, as well as bovine and swine offal, must be wholly obtained from live animals born, raised or living in the CPTPP territory. For example, frozen pork cuts obtained from Canadian pigs would meet the rules of origin.
Sausages can be produced using non-CPTPP meat and meat offal, as long as the inputs are transformed in the CPTPP territory. For example, Canadian sausage that uses a percentage of swine offal from the United States, but is processed and transformed into sausage in Canada, would meet the rules of origin.
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.
Under the CPTPP, certain pork exports to Malaysia are subject to their TRQs:
- Fresh or chilled carcasses and half-carcasses of swine – TRQ of 2,000 kg beginning on ratification of the agreement. Starting on year two, the TRQ quantity will increase by one percent per year, compounded annually.
- Frozen carcasses and half-carcasses of swine – TRQ of 200,000 kg beginning on ratification of the agreement. Starting on year two, the TRQ quantity will increase by one percent per year, compounded annually.
There are no beef-related TRQs under the CPTPP.
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
- Consolidated TPP Text – Appendix A: Tariff Rate Quotas of Malaysia
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 email@example.com for questions about CPTPP or accessing one of its markets.
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