When it comes to international trade, free trade agreements (FTAs) play a crucial role in facilitating trade between countries. A free trade agreement allows member countries to import and export goods and services without any tariff or duty fees. Canada, being a major player in international trade, has signed numerous free trade agreements with countries worldwide. But does Canada have a free trade agreement with Japan?
The simple answer is yes.
The Canada-Japan Economic Partnership Agreement (CJPA) is a free trade agreement between Canada and Japan that came into effect on December 30, 2018. The agreement covers a wide range of sectors, including agriculture, forestry, fisheries, energy, mining, and information technology.
The CJPA is a comprehensive agreement that eliminates tariffs on a wide range of products, making trade between Canada and Japan simpler and more cost-effective. According to the Government of Canada, the agreement is expected to increase Canada`s GDP by $1.7 billion and create thousands of new jobs in Canada.
One of the significant benefits of the CJPA is that it opens up new markets for Canadian businesses, particularly in the agriculture and agri-food sectors. According to the Government of Canada, Japan imported CAD 16.6 billion in agri-food products in 2018, making it a significant market for Canadian exporters.
The CJPA also includes provisions on intellectual property, labor, and the environment, ensuring that trade is sustainable and fair. Moreover, the agreement includes a dispute settlement mechanism, providing a framework for resolving any disputes that may arise between Canada and Japan.
In conclusion, Canada does have a free trade agreement with Japan. The CJPA is a comprehensive agreement that benefits both countries in many ways, including increasing trade volumes, creating jobs, and opening up new markets. The agreement also ensures that trade is sustainable, fair, and benefits the environment. As a result, Canadian businesses can take advantage of the agreement`s benefits to expand their operations and increase exports to Japan.