Japan, Canada agree to resume joint study on bilateral FTA: sources
Mainichi Japan | February 23, 2011
Japan, Canada agree to resume joint study on bilateral FTA: sources
TOKYO (Kyodo) — Japan and Canada have agreed to resume a joint study on the possibility of a bilateral free trade agreement, Japanese government sources said Wednesday.
The latest development comes in line with the Japanese government’s policy to push for free trade agreements with other countries in the hope to boost its sluggish economy.
But it is apparently not easy for Japan to swiftly end the joint study and enter into full-fledged free trade negotiations with Canada, as Tokyo would likely face the difficult decision on whether it can eliminate tariffs on farm products such as wheat and pork.
The two countries have conducted a joint study on the FTA issue between 2005 and 2006. But they ended the study without agreeing to start free trade negotiations due to the difficulty in ironing out their differences.
On the reported agreement, the Canadian Chamber of Commerce in Japan said in a release that the chamber "believes that an economic partnership agreement will help to leverage mutual synergies that will enhance prosperity in both Canada and Japan."
The release also said that a free trade pact will have a number of benefits, including "opening new markets for goods and services" and "creating more secure access to resources."
Both Japan and Canada have showed interest in a wider regional free trade initiative called the Trans-Pacific Partnership, which is currently being negotiated with such countries as the United States and Australia.
The TPP is intended to require members in principle to reduce all tariffs to zero within 10 years, a tough condition for Japan which is known for its longstanding reluctance to open up its agricultural market.
Japan has so far excluded politically sensitive agricultural items such as rice and wheat from tariff elimination in FTAs signed with other economies.
