In 2018, Canada joined 10 other countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The agreement will significantly reduce barriers to trade among
member countries (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, and Vietnam). Some opponents of the original deal (the Trans-Pacific Partnership reached
in 2015, which also included the United States) and the CPTPP argue that there is no way for countries as different as Canada and Vietnam to benefit from the trade agreement at the same time
because Canada is so much more productive than Vietnam. Is there any way for Canada to gain from trading with a country over which we have an absolute advantage in virtually everything? Is
there a way for Vietnam to benefit as well?
Canada
?. Vietnam
?
could benefit from importing products for which Canada has a higher opportunity cost
could benefit from exporting products for which Canada has a comparative advantage
could benefit from importing products for which Canada has a comparative advantage
could benefit from importing products for which Canada produces at a lower total cost
could benefit from importing products for which it has a comparative advantage
can only benefit by trading with countries that do not have an absolute advantage