Japan-Canada Economic Framework

November 2007

1. Background

At the Japan-Canada summit meeting held in January 2005, the leaders of Japan and Canada issued a Joint Statement that set forth an initiative launching an innovative Japan-Canada Economic Framework [PDF]. As a practical means of promoting and revitalizing effective Japan-Canada economic ties in an integrated and coherent manner, the Prime Ministers of Japan and Canada signed an action-oriented and flexible Economic Framework document in November 2005.

Aimed at reinforcing existing bilateral economic ties and addressing new and emerging commercial challenges and opportunities, the Economic Framework reinvigorates the existing government-to-government dialogue, lays the groundwork for future cooperation on priority areas, and emphasizes the role of the private sector in guiding future initiatives.

The Economic Framework document [PDF] includes a shared list of 15 priority areas of cooperation and the terms of reference of this Joint Study.

2. Cooperation under the Economic Framework

Under this Framework, Japan and Canada undertake the following:

(a) to reinforce cooperation in 15 priority areas, which the Joint Economic Committee oversees;
Priority Areas of Cooperation: Social Security Agreement, Cooperation on Anticompetitive Activities, Food Safety Cooperation, Customs Cooperation, Trade Facilitation, Transportation, Investment, Science and Technology, Information and Communication Technology, E-Commerce, E-Government, Energy and Natural Resources, Climate Change, Tax Convention, Tourism Promotion
(b) to establish a Cooperative Working Group on an ad hoc basis;
(c) to complete the Joint Study on the benefits and costs of further promotion of bilateral trade and investment; and
(d) to promote regulatory cooperation and enhance cooperation in multilateral and regional forums on liberalization of trade and investment and dialogue with the private sector.

3. Major Achievements in Priority Areas of Cooperation

Since the launch of the Japan-Canada Economic Framework in January 2005, significant progress has been achieved in a number of the priority areas of cooperation, which includes:

(a) signing of the Japan-Canada Social Security Agreement in February 2006;
(b) signing of a Cooperation Agreement on Anticompetitive Activities, which came into effect on October 6, 2005;
(c) conclusion of an enhanced bilateral customs cooperation arrangement in June 2005; and
(d) signing of a memorandum of understanding on bilateral investment promotion between Canada's Department of Foreign Affairs and International Trade (DFAIT) and the Japan External Trade Organization (JETRO) in May 2005.

4. Objectives of the Joint Study

The Joint Study aims to examine the benefits and costs of further promotion of trade and investment, as well as other cooperative issues between the two countries, giving appropriate consideration to the interests of the private sector.

5. The Summary of the Joint Study Report

(Text of the Report [PDF])

The structure of the Report is as follows:

Chapter 1: Introduction: An Analysis of the Bilateral Economic Relationship
Chapter 2: Examining Canada-Japan Economic Relations in the Context of Bilateral, Regional and Multilateral Initiatives
Chapter 3: Past and Present Trends in the Bilateral Economic Relationship
Chapter 4: Summary of Current Bilateral Economic Collaboration
Chapter 5: Examination of the Existing Measures Limiting the Full Potential of Trade and Investment
Chapter 6: Analysis of the Implications of Further Promotion and Liberalization of Trade and Investment
Chapter 7: Summary of Findings

Based on the private sector consultations and analysis of the Joint Study, Japan and Canada will pursue the following initiatives.

(a) Multi-Sectoral Initiatives

Dialogue on regulatory reform
Cooperation on their respective Asia Pacific gateway initiatives
Investment promotion and cooperation
Updating the double taxation agreement
Revisit the possibility of an FTA

(b) Sector-Specific Initiatives

Cooperation on food safety issues
Cooperation on intellectual property rights and patent-related issues
Partnership in energy cooperation
Further collaboration in science and technology
Consultation on air services
Mutual Recognition Agreement on Telecommunications Equipment

Get Acrobat Reader (Open a New Window)

Back to Index