Canada and Japan Trade Agreements: A Comprehensive Overview
Canada and Japan have a historically strong relationship in terms of trade and investment. Moreover, both countries have developed a bond of trust and mutual respect, which has led to the thriving business partnerships they share today. The two countries have signed several trade agreements, which have enhanced their economic ties and opened up new trade avenues for their respective businesses.
The Canada-Japan Economic Partnership Agreement (CJEPA)
The CJEPA is a bilateral trade agreement signed between Canada and Japan in 2018. It aims to strengthen trade relationships between the two countries by reducing and eliminating tariffs on a wide range of goods and services. The agreement includes provisions on industrial goods, agricultural products, and fishery and forestry products.
One of the key benefits of the CJEPA is that it provides a framework for the mutual recognition of qualifications and professional credentials. This means that Canadians and Japanese professionals can now work in each other`s countries without going through the costly and time-consuming process of getting re-certified.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The CPTPP is a multilateral trade agreement signed between 11 countries, including Canada and Japan. The agreement was signed in 2018, and it aims to create an open and fair trade environment across the Asia-Pacific region.
The CPTPP eliminates tariffs on a wide range of goods and services, thereby creating new opportunities for Canadian and Japanese businesses to expand their reach. Moreover, the agreement includes provisions on intellectual property, labor rights, and environmental protection, which are designed to ensure that trade is conducted in a fair and responsible manner.
One of the primary benefits of the CPTPP is that it creates a level playing field for businesses, regardless of their size. Small and medium-sized enterprises can now enjoy the same benefits as large multinational corporations, thereby leveling the playing field and creating a more competitive business environment.
Canada-Japan Joint Study on Free Trade
In 2012, Canada and Japan signed a joint study on the feasibility of a free trade agreement between the two countries. The study concluded that such an agreement would be beneficial for both countries, as it would increase trade and investment flows and promote economic growth.
Although no formal agreement has been signed yet, negotiations are ongoing, and both countries remain committed to exploring the potential benefits of a free trade agreement.
Conclusion
Overall, the trade agreements between Canada and Japan have been instrumental in promoting trade and investment flows between the two countries. The CJEPA and the CPTPP have eliminated tariffs on a wide range of goods and services and provided a framework for mutual recognition of professional qualifications. Moreover, the ongoing negotiations on a free trade agreement demonstrate the commitment of both countries to further enhancing their economic ties. As such, both Canadian and Japanese businesses can look forward to new opportunities in the future.