International Business Planning: Analysis of TPP and CETA for Canadian Manufacturing Industry

This report analyzes and provides insight details regarding the regional, international and global trade agreement to the Canadian manufacturing firm. It discusses the rational for creation of the chosen agreement, suggestions for the agreement and conclusion. The report also includes subject, course code, course name and university.

Running head: INTERNATIONAL BUSINESS PLANNING
International business panning
Name of the student
Name of the University
Author note

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Table of Contents
Purpose of the report:.......................................................................................................................2
Rational for creation of the chosen agreement:...............................................................................2
Suggestions for the agreement:........................................................................................................3
Conclusion:......................................................................................................................................4
Appendix:........................................................................................................................................5
Bibliography:...................................................................................................................................6

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Purpose of the report:
Canada is one of the developed nations, which is highly associated with the international
trade and almost 75% of its GDP comes from the international trade (Charbonneau, Munnik &
Murphy, 2018). One of the major sectors that provide almost 70% of the Canadian GDP is the
manufacturing industry (Kleinaltenkamp, 2018). In this context, this report is meant to analyze
and provide insight details regarding the regional, international and global trade agreement to the
Canadian manufacturing firm. Among many international agreements, Trans Pacific Partnership
(TPP) and Comprehensive Economic and Trade agreement (CETA) are the two important
international trade agreements that fit with the motive of the said manufacturing industry
(Lysenko & Schwartz, 2015).
Rational for creation of the chosen agreement:
TPP:
Canadian manufacturing sector is a growing industry, which is facing boost in the recent
years (Behrens & Bougna, 2015). Presence of NAFTA has helped the manufacturing industry
largely; however, it has failed to reach in the Asian market. With the help of the TPP agreement
Canadian manufacturing industry can enhance its business to the Asian countries and strong
disciplined structure of the trade agreement will enhance the trade scope in EU countries and US
states as shown in the figure 2 (appendix) (Mukhopadhyay & Thomassin, 2018). On the other
hand it is expected to reduce the trade barriers in the US market on behalf of the Canadian
industries.
CETA:
Comprehensive Economic and Trade agreement is aimed to provide important business
facilities to both the EU and the Canadian manufacturing firms. It will act as the gateway of free

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trade to the non-EU and EU business houses to invest more in the Canadian firms. CETA will
eliminate the tariff on Canadian goods and services in the EU market by 98% as compared to the
present 25% as shown in the figure 1 (appendix) (Collins, 2015). According to the same source,
agricultural sector will be liberalized to 93.6% and it will boost the Canadian automotive sector.
Investment review threshold will be enhanced from 600 Canadian dollars to 1.5 billion Canadian
dollars leading to better holding in EU mark by the Canadian business houses (Lysenko &
Schwartz, 2015).
Suggestions for the agreement:
TPP:
TPP in their very nature is anti-democratic according to the Green Party of Canada and
the several clauses of the agreement are same as the prevailing NAFTA agreement (Baker &
Geddes, 2015). Besides this, TPP agreement does not provide any clause regarding the climate
change, which may hamper the 15 billion Canadian dollars arbitration suit against US, launched
under the NAFTA agreement (Hufbauer & Jung, 2017). Besides these, there are various issues
that need to be considered by the TPP model in order to making it robust and ideal for the
Canadian manufacturers.
CETA:
According to the Mertinis (2014), CETA is expected to hamper the local job creation and
public service as well as the manufacturing sectors, which are the lifeline of the Canadian
economy. Moreover, CETA can hamper the health care service of the country and lack of clauses
that address the environmental issues will hamper the Canadian climate as expected by Kohler &
storm (2016). CETA agreement needs to address these issues, and make it liberalized for both
the participating parties to make it suitable for implementation.

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Conclusion:
Considering the issues related with CETA and TPP agreements it has found the existing
NAFTA agreement and other bilateral agreements are serving the Canadian manufacturing
sectors well. Bringing in changes in the economy in order to implementing the chosen
agreements, during the growth stages of the economy will not be the beneficial as expected.

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Appendix:
Figure1:
Figure 2:

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Bibliography:
Baker, B. K., & Geddes, K. (2015). Corporate power unbound: investor-state arbitration of IP
monopolies on medicines-Eli Lilly v. Canada and the Trans-Pacific Partnership
Agreement. J. Intell. Prop. L., 23, 1.
Behrens, K., & Bougna, T. (2015). An anatomy of the geographical concentration of Canadian
manufacturing industries. Regional Science and Urban Economics, 51, 47-69.
CETA is expected to hamper the local job creation
Charbonneau, K. B., de Munnik, D., & Murphy, L. (2018). Canada’s Experience with Trade
Policy (No. 18-1).
Collins, D. (2015). Globalized Localism: Canada's Government Procurement Commitments
Under the CETA.
Hufbauer, G., & Jung, E. (2017). NAFTA Renegotiation: US Offensive and Defensive Interests
vis-à-vis Canada. 17-2 A Path Forward for NAFTA, 50.
Kleinaltenkamp, M. (2018). Peter LaPlaca–The best marketer of industrial and B2B marketing
research. Industrial Marketing Management.
Kohler, P., & Storm, S. (2016). CETA without Blinders: How Cutting “Trade Costs and More”
Will Cause Unemployment, Inequality, and Welfare Losses. International Journal of
Political Economy, 45(4), 257-293.
Lysenko, D., & Schwartz, S. (2015). Does Canada Need Trade Adjustment Assistance?. IRPP
Study, (57), 1.
Mukhopadhyay, K., & Thomassin, P. J. (2018). The impact of Trans-Pacific Partnership
agreement on the Canadian economy. Journal of Economic Structures, 7(1), 5.