Expanding Into Canada: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership Considerations

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) is a free trade agreement (“FTA”) between Canada and 11 other economies: Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam. Prior to this agreement, Canada already had FTAs with many members, including Chile, Peru and Mexico.

The inclusion of Japan in the CPTPP marks a significant opportunity for Canada-Japan trade relations. As of 2025, foreign direct investment (“FDI”) stock from Japan in Canada was valued at $54.8 billion, making Japan Canada’s largest source of FDI. Additionally, imports from Japan were valued at $21.1 billion, consisting largely of vehicles, machinery and equipment, and scientific and precision instruments (mainly for medical use).

For international clients seeking to expand into Canada, the CPTPP can significantly reduce the cost and complexity of market entry. It establishes market access commitments across trade in goods, services, investment, labour mobility and government procurement. The CPTPP eliminates or reduces customs duties on most goods, while also improving the transparency and predictability of trade-related processes.

This overview addresses key questions relating to the CPTPP, with a focus on the issues most commonly raised by businesses in member states considering exporting to, investing in or establishing operations in Canada. Given the CPTPP’s complex structure, exceptions and side letters, engaging counsel to prepare for and operationalize its benefits can reduce unexpected costs and enable businesses to fully capture the value of the agreement.