Japan and Canada have agreed to start negotiations
toward a bilateral free trade pact, leaders from both sides announced on Sunday
25 March.
The news follows a recently released joint study
estimating that such an agreement could mean gains of up to C$3.8 billion
(US$3.81 billion) a year in Canadian gross domestic product (GDP), with
Canadian exports to Japan increasing by as much as 67 percent.
The study found that a bilateral trade deal could
add billions of dollars to Canada’s economy in the areas of agriculture,
energy, and aerospace.
While Japan is hoping that such an accord would
remove a 6.1 percent tariff on its automobile exports
to Canada - a possibility that has prompted concern from Canadian auto
producers - Ottawa is looking to achieve increased agricultural market access
in Tokyo.