Canada, Japan Trade Treaty Talks Make Progress

Statements after the conclusion of the third round of negotiations on a Canada-Japan economic partnership agreement (EPA) confirmed that progress was made in a number of key areas, including trade in goods and services and investment protection. The talks were held in Tokyo from July 8 to 12.

Japan is Canada's fourth-largest merchandise export market, and is a priority market for the Canadian Government. In 2012, total Canadian exports to Japan reached nearly CAD10.4bn (USD10bn). With almost CAD17.5bn invested in Canada in 2012, Japan is Canada's largest source of investment from Asia.

According to a joint study into the potential benefits of the prospective EPA, Canadian exports to Japan could increase by as much as 67 percent, and Canada's gross domestic product could be boosted by as much as CAD3.8bn. The agricultural-food products, fish and seafood, and natural resources sectors are in particular expected to benefit from strengthened bilateral trade opportunities.

Ed Fast, Canadian Minister of International Trade and Minister for the Asia-Pacific Gateway, said: "Opening new markets for Canadian exporters is a key part of Canada's Economic Action Plan. … That is why we are deepening our economic relationship with Japan, the third-largest economy in the world, and we are pleased that progress is being made toward an agreement."

In addition, Japan is set to join the Trans-Pacific Partnership (TPP), of which Canada is a member, at the end of July. Canada and Japan view the EPA and TPP negotiations as mutually supportive initiatives. With the addition of Japan, the TPP would represent a market of more than 792m people and more than 38 percent of the world's economy.

July 16, 2013

Source: Tax News