The Japan Canada Free Trade Agreement: What You Need to Know
The Japan Canada Free Trade Agreement (JCFTA) is a bilateral trade agreement between Japan and Canada that was signed on March 11, 2018. The agreement was implemented on December 30, 2018, and has been in effect ever since.
The JCFTA is a comprehensive free trade agreement that covers a wide range of industries, including automotive, agriculture, forestry, and fishery products. The agreement is expected to increase trade between Japan and Canada by removing barriers to trade, such as tariffs and quotas.
One of the major benefits of the JCFTA is that it levels the playing field for Canadian exporters to Japan. Under the agreement, Japan will reduce or eliminate tariffs on a wide range of Canadian products, including agricultural products such as beef, pork, and canola. This will make Canadian products more competitive in the Japanese market, which is the world`s third-largest economy.
In turn, Canada has agreed to eliminate tariffs on Japanese products, such as cars and electronics. This will make Japanese products more affordable for Canadian consumers, which will increase demand for Japanese goods in Canada.
The JCFTA is also expected to have a positive impact on the Canadian economy. According to the Canadian government, the agreement could increase Canada`s GDP by $1.7 billion and create up to 16,000 new jobs. The agreement will also provide Canadian businesses with access to the Japanese market, which could lead to increased investment and growth opportunities.
However, the JCFTA is not without its critics. Some Canadian farmers are concerned that the agreement will lead to increased competition from Japanese producers, which could hurt their bottom line. There are also concerns that the agreement could lead to job losses in some industries, such as the automotive sector.
Overall, the JCFTA is a significant agreement that has the potential to benefit both Japan and Canada. While there are some concerns about its impact on certain industries, the agreement is expected to increase trade and investment between the two countries and provide new opportunities for businesses and consumers.