AIAC applauds conclusion of Trans-Pacific PartnershipOctober 5, 2015
Ottawa (Ontario) – The Aerospace Industries Association of Canada (AIAC) welcomed the announcement today that Canada and eleven other countries have reached an agreement on the creation of a Trans Pacific Partnership (TPP) that will open markets and foster international trade. The TPP will immediately remove all tariffs on all aerospace products. It also introduces measures such as streamlined customs procedures that will make it easier for Canadian companies to export to foreign markets.
Canada’s aerospace industry is very export-intensive, sending 80% of its products to destinations around the world. Nearly 65% of all Canadian aerospace exports are to countries within the Trans Pacific Partnership, totalling over $10 billion dollars in 2013. In addition, four out of Canada’s top ten aerospace export destinations – the United States, Singapore, Japan and Australia – are members of the TPP.
The Asia Pacific region represents a significant amount of expected growth in the aerospace industry over the next twenty years. Forecasts indicate that over 38,000 new aircraft valued at $5.6 trillion will need to be delivered in order to meet increased global demand. 40 percent of those planes are anticipated to be delivered to the Asia Pacific, making it essential for Canada to be competitive within the region.
“The TPP creates a level playing field for Canadian companies to compete in the Asian market. It ensures that our access to key markets such as Singapore and Japan remains strong, and ensures our ability to compete equally with other aerospace nations such as the United States, Japan and Mexico,” said Jim Quick, President and CEO of AIAC.
“Lowering trade barriers and creating equal or preferential access to key markets is essential to our industry’s ability to grow, innovate, and employ Canadians. We applaud the government for securing Canada’s place in the TPP,” added Mr. Quick.
AIAC is the national association representing Canada’s aerospace manufacturing and services sector. As the world’s fifth-largest aerospace industry, Canada’s aerospace sector contributes over $29B to the economy in GDP, exports 80% of its output, and dedicates over 20% of its activity to research and development (R&D). Aerospace is responsible for the employment of 180,000 Canadians.
Director of Communications
Aerospace Industries Association of Canada
613 232-4297 x225