On March 25, a decision was reached between the Japanese and Canadian governments to start negotiations on the establishment of an economic partnership agreement (EPA) between
Japan and
Canada. While the
Japan Automobile Manufacturers Association (JAMA) has welcomed the decision,
Canada's Prime Minister Stephen Harper has said a new treaty could boost
Canada's exports by 60 percent, noting that
Japan is the world's third-largest economy and
Canada's fourth-largest export market.
JAMA commented on the decision stating that the Japanese automobile industry has a longstanding presence in
Canada, the extent of which reflects its considerable investment in
Canada over the decades. JAMA is confident that a
Japan-
Canada EPA will be instrumental in accelerating trade and investment between the two nations and will contribute significantly to the advancement of the auto industry both in
Canada and
Japan.
On the other hand, media resources have mentioned that
Canada's auto sector is not exactly happy about the decision. Japanese cars being imported into
Canada pay a tariff of about six percent, and there are concerns that if a free trade deal is agreed the tariff will be lifted, which could mean that Japanese cars would be cheaper in
Canada and competition would be a lot tougher.