Canada reaches deal on revised Trans-Pacific Partnership

Canada has agreedto a resurrected version of the Trans-Pacific Partnership and will sign on to the deal.

The deal,renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership,comes after talks in Japan this week with the 11 countries still committed to the deal.

"We are happy to confirm the achievement of a significant outcome on culture as well as an improved arrangement on autos with Japan, along with the suspension of many intellectual property provisions of concern to Canadian stakeholders," saidInternational Trade MinisterFrancois-PhilippeChampagne in a statement.

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"Canada has always said that we would only agree to a deal that is in Canada's best interests."

Canada was seen as the main holdout during talks in Vietnam last November. Prime Minister Justin Trudeau sparked an international controversywhen he didn't sign an agreement in principle,arguing Canada had concerns about the pact'sculture and the automotive sectors.

A Canadianofficial with close ties to the deal said Champagne spent the weekend, and into Monday night, speaking to his TPP counterparts on the phone.

Culture file important to Canada

Last week,Trudeau also appointed IanMcKay, chief executive of the Vancouver Economic Commission, as his special envoy to Japan.

Praised for his "deep knowledge" ofhow business works in that country as well as his fluent Japanese, officials say he played an important role in securing a deal.

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Sources say Canada made "real gains" on the pact's labour and environment chapters, and suspended what the government saw as a problematic dispute settlement provisions and an intellectual property section.

In November, Canada pushed to changeprovisions relating to culture and French-language rights.It said the other 10 countries did "affirm the right of each party to preserve, develop and implement its cultural policies.

"We all understand weneed to do more on culture. I've said Canada will not settle for less. It was essential for me to fight for Canadian culture," Champagne said at the time.

A government source said Champagne continued to push hard for an exemption on cultural items and recently secured t through legally binding side letters with every other CPTPP member country.

Canadian auto industry outraged

A bigger sticking point was the auto sector.

Canada wrangledabilateral arrangement with Japan to resolve non-tariff barriers, including a binding dispute settlement mechanism,an official told The Canadian Press.

The dealalso includes a bilateral agreement with Malaysia to adjust auto rules-of-origin, and another agreement was being finalized with Australia, they added.

Flavio Volpe of the Toronto-based Auto Parts Manufacturers' Association said this agreement moves Canada in the exact opposite direction of where the U.S. isheaded, just as the tense North AmericanFree Trade Agreement talks resume.

He said the U.S. is pushing for a new NAFTA that increases domestic content requirements, and keeps Chinese parts out of North America,but the revised Asia-Pacific pactreduces local requirements and lets more product from non-TPP countries like China into the market.

"This could not be a dumber move at a more important time,"Volpesaid in an interview.

UniforPresident JerryDias, head of Canada's largest private sector union, was also quick to slam the deal, saying it would be detrimental to workers.

"Thisisn't progress for workers, it's a mockery," he tweeted.

NAFTAtalks resume

Some assumed the original deal was dead when U.S. PresidentDonald Trumpwithdrew from it after assuming office.

But the remaining countriescarried on with negotiating.

Japanese Economy Minister Toshimitsu Motegisaid his countrywould explain the importance of the deal toWashington in hopes of persuading it to join.

He said the newCPTPPwould be an "engine to overcome protectionism" emerging in parts of the world

"This outcome reaffirms the CPTPP countries' collective commitment toward greater trade liberalization and regional integration," added Singapore's Ministry of Trade and Industry said in a statement.

While signing the deal is a feather in Champagne's hat, the deal comes the same day the sixth round of talks on NAFTAkick off in Montreal.

This roundisexpected to be the most tense round of negotiating yetas Canada, the U.S. and Mexico dive into the mostcontroversial chapters, including the auto and dairy sectors and a proposed sunset clause.

Volpeaccused Champagne of chasing a legacy item, without thinking of how chasing the CPTPPcould hurt NAFTAnegotiations.

"We're trophy hunting,"Volpesaid.