The Canadian government agreed to launch a joint study with Japan today to examine potential benefits of a trade liberalizing deal with the world’s third largest economy.
The joint study announcement is typically the precursor to trade talks.
International trade minister Peter Van Loan said in Ottawa that Japan’s willingness to examine the potential for a trade deal is a major advance in Canada’s aggressive trade agenda.
“With today’s announcement, Japan is taking an important step toward opening markets for the mutual benefit of both countries,” he said. “The Japanese recognize the significant economic advantages of increasing trade.”
Canadian farm and business groups quickly praised the possibility of talks with Japan.
“Japan represents one of the best customers for Canada’s meat exports,” Canadian Meat Council president Brian Read said in a statement issued by the industry group representing federally registered packing plants. “With a population of almost 128 million people, Japan is the world’s largest net importer of food products.”
Grain Growers of Canada said the announcement “is a real opportunity for Canadian farmers.”
President Stephen Vandervalk said all political parties should support the launch of trade talks with Japan.
“Japan is well known for paying a premium price for agricultural imports that meet its exacting specifications,” he said. “Canada is well positioned to gain because we have the ability to segregate cereals and oilseeds to capture those premium prices which means more dollars in farmers’ pockets.”
However, any launch of free trade talks likely is a year or more away, depending on the opportunities identified in the joint study and the sectors that both countries decide are not up for negotiation.
