Why is Canada engaging in free trade negotiations with Japan?
Improving access to strategic markets in the Asia-Pacific region is at the core of Canada’s long-term prosperity and a key part of our government’s job-creating, pro-trade plan.
Japan is a priority market under the recently released Global Markets Action Plan and the bilateral EPA negotiations represent a landmark opportunity to deepen Canada's relationship with one of the world’s largest and most innovative economies.
Liberalizing trade in goods and services with Japan will allow Canadian businesses to take advantage of the full range of opportunities offered in the Japanese market.
A comprehensive agreement will also contribute to growth in two-way investment, and growth in investments helps to build a stronger Canadian economy.
Japan’s sophisticated market offers great potential for further expansion in two-way investment and trade in goods and services.
What are the potential benefits of a CJEPA to Canada?
By reducing tariffs, improving market access, enhancing cooperation and facilitating trade, an EPA with Japan will open up new market opportunities for Canadian businesses and SMEs and help them be more competitive in the Japanese market.
An agreement is also expected to address non-tariff barriers affecting market access for Canadian exporters and investors seeking to take advantage of the opportunities offered by the Japanese market.
As a gateway to Northeast Asia, Japan is a pivotal player in global value chains. Preferential access to these value chains helps to make Canadian products more competitive.
An EPA with Japan would put in place the right conditions for Canadian businesses to increase their footprint in the Asia-Pacific region, using Japan as a platform to penetrate new, high-growth markets.
Released on March 7, 2012, the Report of theJoint Study on the Possibility of a Canada-Japan Economic Partnership Agreement projects that an agreement could increase Canada’s gross domestic product (GDP) by US$3.8 billion and boost exports to Japan by 67 percent.
Which sectors are likely to benefit from a free trade agreement with Japan?
A comprehensive agreement will allow Canadian exporters of goods and services to take advantage of the full range of market opportunities in Japan, Canada’s fourth largest merchandise export market and our second largest trading partner in Asia.
A comprehensive agreement will contribute to growth in two-way investment. Japan is currently Canada’s largest source of job-creating investment from Asia, at more than $17 billion at the end of 2013.
An agreement is expected to strengthen bilateral trade and investment opportunities in many areas of interest to Canada, including agri-food products and natural resources.
How long will it take before negotiations are concluded?
Negotiations are proceeding well with six rounds held to date.
Canada is committed to advance negotiations expeditiously in order for companies to capitalize on the many opportunities in our respective markets as soon as possible.