What Agreements Exist Between Canada And Japan

What Agreements Exist Between Canada And Japan

Bilateral trade liberalization between Canada and Japan would also have an impact on third-country economies. Supported by the more efficient allocation of resources resulting from bilateral trade liberalization, Japanese exports are expected to increase both to Canada and the rest of the world. Improved terms of trade are expected to increase Canadian exports to Japan; However, Canadian exports to the rest of the world would decline, with some trade being redirected to Japanese markets (see Table 6.2). The CCCE and Nippon Keidanren have been cooperating for more than 20 years in Canada-Japan economic relations and have been at the heart of the development and completion of the economic framework. Following a meeting between the CCCE and Nippon Keidanren in 2004, the two organizations called for a strengthening of bilateral economic relations and insisted on a framework agreement between the two governments. This call to action accelerated the decision of both governments to advance the draft new economic framework that had been discussed jointly. Shortly thereafter, in January 2005, the Canadian and Japanese Prime Ministers initiated the development of the Canada-Japan economic framework. At their last meeting in Canada in November 2005, the leaders of CCCE and Nippon Keidanren issued a joint statement calling on the Canadian and Japanese authorities to quickly seek a debate on ways to improve bilateral relations (the joint declaration is www.ceocouncil.ca or www.keidanren.or.jp available). Nuclear energy, which dates back to a cooperation agreement on the peaceful use of nuclear energy, signed in 1959, is an example where bilateral cooperation is rather developed. Since then, there has been a full exchange on nuclear safety and radiation protection, fuel storage and transportation issues, as well as technical cooperation in the development of products such as pump joints used in nuclear power plants in both Canada and Japan.

Cooperation also exists at various levels within the nuclear industry, nuclear energy regulators, utilities and research agencies. Cooperation has even extended to third-party markets, such as joint cooperation for the construction of two CANDUFootnote 14 reactors in China, in addition to joint efforts to develop an advanced TECHNOLOGIQUE reactor. One economist noted that if the WTO had played a central role in the liberalization of world trade in the past, the WTO`s role in harmonizing world trade rules had reached its limits, and that in the future this role would shift to bilateral or regional free trade agreements, in which countries share common interests and have a mutual understanding of the nature of liberalization among themselves. With regard to agricultural products, he pointed out that, in many cases, it is difficult to show Japanese farmers the benefits of liberalization, which generally do not have a comparative advantage. It concluded that, in these cases, the feasibility of a free trade agreement depended on the possibility of excluding these sensitive products from the removal of tariffs. He focused on a number of examples from the global FTAs 17 rating. He proposed that rice, wheat and barley, dairy products, sugar and pork be among Japan`s important and sensitive products, and these import restrictions were largely changed in tariff quotas during the GATT cycle, and stated that the removal of tariffs on these products through free trade agreements with the United States , Australia and New Zealand would certainly lead to the destruction of Japanese agriculture.