What are the implications of the Trans-Pacific Partnership (TPP) for Canada’s trade, competitiveness and prosperity? To answer this question, the paper begins by summarizing the ways that the TPP expands intellectual property rights in Canada. Guided by the theory of comparative advantage, it examines the impact of these expansions and trade liberalization on Canada’s national welfare and across sectors. Using data on Canadian exports and imports across 23 manufacturing sectors, sectors are ranked by innovation intensity, as measured by the number of registered Canadian patents per sector, and TPP partners are ranked by the strength of their existing patent rights (PRs). Following this analysis, the economics literature on the relationship between PRs, patenting activity, international trade and innovation is reviewed. The paper concludes with policy recommendations.
