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Current Relations between Japan and Canada

Relations in General

Japan and Canada have continued to enjoy good relations in recent years. Prior to this visit to Japan by Prime Minister Chretien, then-Prime Minister Murayama visited Canada in June 1995 to attend the G7 Summit in Halifax, and Prime Minister Chretien visited Japan for the Osaka APEC meetings the following November. In September 1996, Foreign Minister Ikeda visited Canada, at which time he met with his Canadian counterpart. Talks between the two prime ministers and foreign ministers have also been held at the time of G7 Summit, APEC and other international meetings. As industrialized nations who share common values, we have utilized this traditionally friendly relationship as a foundation for close policy coordination in the UN, G7, OECD, and other international fora. Japan and Canada have also been collaborating closely on UN peacekeeping operations, environmental issues, human rights and other matters. In particular, Japan works in close contact and consultation with Canada on UN peace-keeping operations, drawing on Canada's long experience in peace-keeping missions. For example, Japan dispatched 45 people to UNDOF in February to relieve Canadian transport forces.

As an Atlantic nation, Canada is an important member of NATO and the OSCE. At the same time, Canada has also identified itself as a Pacific nation. It has made 1997, a year in which Canada will host APEC, "The Year of the Asia-Pacific." It is also working to strengthen its relations with other members of the Asia-Pacific, and hopes to establish even closer ties with Japan in this context.

Economic Relations

The economic relationship between Japan and Canada is fundamentally sound, and ranks as one of the most stable and balanced bilateral economic relationship Japan has with any of its trading partners. Both trade and investment are developing steadily.

  • Trade
    Japan is the second longest trading partner for Canada in both exports and imports, second only to the United States (accounting for 4.6 percent and 5.4 percent respectively, of total Canadian exports and imports). Canada ranks as the eighth-largest source of Japanese imports (3.2 percent), and the 17th-largest destination for Japanese exports (1.3 percent). According to Japanese statistics, Japan exported $5.8 billion in goods to Canada, and imported $10.8 billion worth of Canadian goods in 1995, resulting in a bilateral trade deficit of $5.0 billion for Japan. Canada is one of only a handful of industrialized nations (including Italy and Australia) now running a trade surplus with Japan. According to Canadian statistics, Canada's overall trade deficit shrank considerably in 1995. Japanese exports to Canada consist primarily of automobiles, auto parts, power turbines, chemical and engineering equipment, and office machinery. Imports from Canada comprise mostly lumber, pulp, coal, fishery products, nonferrous metals, and rapeseed. Since 1993, Canada has announced a series of action plans involving federal government support for industries (the fourth revised version was launched in 1995) aimed at boosting the cumulative export volume of high value-added Canadian products designed to accommodate trends in Japanese market demand.

  • Investment
    Japanese direct investment in Canada has been increasing steadily, particularly in the manufacturing sector (lumber, pulp, automotive), real-estate, and finance. In 1995, Canada accounted for 1.1 percent of the total Japanese foreign direct investment worldwide. Canadian investments in Japan, especially in the manufacturing sector, have maintained a steady level. In 1995, Canada supplied 0.4 percent of all direct investment in Japan (Chart 4).

The Japan-Canada Forum

The Japan-Canada Forum 2000 is a joint initiative established in May 1991 by the Japanese and Canadian governments. It is aimed at fostering a stronger bilateral partnership capable of dealing more effectively with emerging challenges in an era of striking change. Following is a chronology of Forum-related developments.

May 1991
Japanese Prime Minister Kaifu and Canadian Prime Minister Mulroney agreed to set up Forum 2000 during summit talks in Japan.

December 1992
Forum 2000 submitted a report including eighteen proposals to leaders of both countries (Prime Minister Miyazawa and Prime Minister Mulroney).

June 1993
Forum 2000 follow-up committee inaugurated.

June 1995
Forum 2000 follow-up committee report submitted.


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