TPP members reach deal

Photo: The Canadian Press

Prime Minister Justin Trudeau, right, sits beside Minister of International Trade Chrystia Freehand as they take part in a Trans-Pacific Partnership meeting on the side-lines of the APEC Summit in Manila, Philippines on Wednesday, November 18, 2015. Canada and the remaining members of the Trans-Pacific Partnership have agreed to a revised trade agreement, according to several international media reports early Tuesday. THE CANADIAN PRESS/Sean Kilpatrick

Canada and the remaining members of the old Trans-Pacific Partnership agreed Tuesday to a revised trade agreement that will forge ahead without the United States, opening distant new markets at a time of uncertainty closer to home.

The deal comes exactly one year after U.S. President Donald Trump withdrew his country from the agreement, leaving Japan as the largest player in a new 11-nation pact that spans two hemispheres and includes both U.S. neighbours.

The agreement follows two days of high-level talks in Tokyo. The partners are now expected to work toward signing the agreement by early March.

"The agreement reached in Tokyo today is the right deal," Trudeau said in a speech at the World Economic Forum in Davos, Switzerland.

"Our government stood up for Canadian interests and this agreement meets our objectives."

Trudeau added that the deal is a new step on the path to ensuring the benefits of trade are shared by all citizens, not just the few.

Right up until the announcement, the Canadian government was pushing for more progress on negotiations surrounding the automotive and cultural sectors.

A government official said International Trade Minister Francois-Philippe Champagne pressed his counterparts for an exemption on culture-related elements that had been part of the original TPP deal. The official said Canada will protect its cultural sector in the updated deal through legally binding side letters with each partner.

The autos component risks being more controversial.

In a sector considered key to the deal, Canada managed to get a bilateral arrangement with Japan to resolve non-tariff barriers, including a binding dispute settlement mechanism, according to an official. The official said the side agreement brings into force key commitments made by Japan to Canada and the U.S. in the original deal, but which were lost when the U.S. pulled out.

The new deal also includes a bilateral agreement with Malaysia to adjust auto rules-of-origin and another agreement was being finalized with Australia, the official added.