Economic Impact of the TPP as Negotiated

Canada’s participation in the Trans-Pacific Partnership (TPP) negotiations is an opportunity to advance Canada’s commercial interests in the Asia-Pacific region. The twelve countries in the TPP Agreement would form one of the largest trade areas in the world with trade among TPP member countries of US$4.0 trillion and trade between TPP countries and the rest of the world of US$5.4 trillion. The TPP countries as a group would be by far Canada’s largest trading partner. Trade with other TPP members accounted for 81.1% of Canada’s total exports to the world and 65.9% of total Canadian imports from the world. This study assesses the economic impact on Canada and other TPP members including both developed and developing members based on the final negotiated outcomes of the TPP agreement that was concluded in Atlanta, Georgia, U.S.A. in October 2015. The economic impact assessment of the TPP was based on simulations with a computable general equilibrium (CGE) model. The CGE model used for this analysis is the Global Trade Analysis Project (GTAP) model with the GTAP database version 9 that is provided and supported by Purdue University, U.S. . This model and other versions of the GTAP model family are used widely by many governments, academics and research institutes around the world to conduct assessments of potential economic impacts of their trade liberalization initiatives.