Canada - Japan Economic Framework

The Government of Canada and the Government of Japan, hereinafter referred to as Canada and Japan respectively,

Recognizing their longstanding friendship and important trade and investment relationship;

Recalling their joint statement to launch an Innovative Canada-Japan Economic Framework, issued in January 2005; their joint establishment of a Global Partnership for the 21st Century in 1999; and the 1976 Canada-Japan Framework for Economic Cooperation that created the Joint Economic Committee;

Recognizing the importance of cultivating an open, stable and predictable environment for trade and investment;

Building on the significant bonds that exist between the two countries in order to facilitate contact between the Canadian and Japanese private sectors;

Reaffirming their commitment to trade and investment liberalization and continued multilateral cooperation under the World Trade Organization;

Reaffirming the importance of ongoing collaborative efforts in the Asia-Pacific Economic Cooperation forum to facilitate economic growth and trade and investment liberalization;

Acknowledging that remaining challenges to bilateral trade and investment must be identified and overcome for bilateral economic relations to reach their full potential; and

Desiring to promote sustainable development by working to ensure that trade and investment policies are consistent with environmental protection and conservation;

Have determined as follows:

Section 1 - Objectives

1. Under this Framework, Canada and Japan aim to achieve the following:

a. to reinforce existing economic ties between the two countries, including the strengthening of functions of the Joint Economic Committee established by the two governments;

b. to address new and emerging trade and investment challenges and opportunities;

c. to respond in an effective and timely manner to the concerns of the Canadian and Japanese private sectors;

d. to promote economic cooperation through policy, as well as business development initiatives; and

e. to strengthen policy mechanisms to enhance trade in goods and services and to create transparent, liberal and facilitative investment environments.

Section 2 - Joint Economic Committee

1. Oversight of this Framework will rest with the Co-Chairs of the Joint Economic Committee, created under the 1976 Canada-Japan Framework for Economic Cooperation. The Co-Chairs of the Joint Economic Committee will meet on a yearly basis, unless otherwise decided, and will exchange information and establish joint working groups, as necessary, to ensure that this Framework remains current and effective.

2. The functions of the Joint Economic Committee include the following:

a. to monitor trade and investment relations;

b. to identify opportunities for expanding trade and investment;

c. to address remaining challenges to bilateral trade and investment; and

d. to review and develop the priority areas of cooperation.

3.   The Co-Chairs of the Joint Economic Committee will establish a Cooperative Working Group to oversee progress on the priority areas of cooperation, whensoever requested, in accordance with Paragraph 1 of this Section and Section 3. When such a request is made, the Co-Chairs of the Joint Economic Committee will identify and approve, as necessary, the relevant priority areas of cooperation to be discussed. The Cooperative Working Group will be co-chaired by officials from Canada and Japan at the Director-General or Deputy Director-General level. The Cooperative Working Group will hold discussions on an ad hoc basis and will seek to maximize the use of existing policy dialogues between ministries and agencies of the two countries in achieving the objectives identified in the priority areas of cooperation. The Co-Chairs of the Joint Economic Committee will ensure that there is no overlap in this Framework with the existing policy dialogues between ministries and agencies of the two countries.

4. The Co-Chairs of the Joint Economic Committee will also establish a Joint Study Working Group, which will be co-chaired by officials from Canada and Japan at the Director-General or Deputy Director-General level, to conduct the Joint Study in accordance with Section 4. The Joint Study Working Group will meet quarterly, in principle, to share information and refine the elements of the Joint Study. The Joint Study Working Group will report its activities to the Joint Economic Committee and will submit a progress report after six months.

5. Both countries may nominate representatives, as appropriate, from the relevant Canadian and Japanese government ministries and agencies, engaged in issues related to trade and investment, to the Cooperative Working Group and the Joint Study Working Group.

6. The Co-Chairs of the Joint Economic Committee will report to the relevant Canadian and Japanese ministers as appropriate.

7. The Co-Chairs of the Joint Economic Committee, the Cooperative Working Group and the Joint Study Working Group will be free to seek advice from the private sector and other domestic players on an ad hoc or formal basis.

Section 3 - Priority Areas of Cooperation

1. Both countries will proceed expeditiously with the implementation of the activities identified under each of the priority areas of cooperation described in Attachment I.

2. At the annual meeting of the Joint Economic Committee, the Co-Chairs will review and update, as appropriate, the priority areas of cooperation as new areas of mutual interest and cooperation are identified and developed.

Section 4 - The Joint Study

1.   Both countries will complete the Joint Study on the benefits and costs of further promotion of bilateral trade and investment, as well as other cooperative issues between the two countries, including the assessment of the implications of further trade and investment liberalization and related policy instruments.

2.   The Co-Chairs of the Joint Economic Committee will review and oversee the findings of the Joint Study conducted by the Joint Study Working Group and discuss next steps. The Joint Study will be completed within twelve months of the date of its commencement, and a report on the Joint Study will then be submitted to the Canadian and Japanese Prime Ministers.

Section 5 - Regulatory Cooperation

1. Both countries recognize the importance of ensuring protection for their citizens and the environment, and the transparency, performance and cost-effectiveness of domestic regulations.

2. Each country further recognizes the value of regulatory cooperation to promote information exchange and expand mutual knowledge of regulatory practices, including enhanced use of best practices, improvement of the effectiveness of regulatory initiatives and facilitation of trade and investment.

3. Both countries will work towards the enhancement of trade and investment through effective mechanisms, including, where appropriate, the reduction of regulatory differences.

4. Both countries are committed to addressing regulatory issues, inter alia, in the context of their 1999 regulatory cooperation arrangement. The Joint Economic Committee will provide a further opportunity to highlight regulatory concerns raised by each country’s respective private sector.

Section 6 - Multilateral, Regional and Bilateral Priorities

1. Canada and Japan will, where appropriate, work together in multilateral and regional fora to pursue common goals with respect to trade liberalization and investment liberalization.

2. Each country may request information from the other country on the possible implications of agreements and ongoing negotiations with any third country or countries that would provide for preferential treatment of trade or investment. The requested country will respond as appropriate and in a prompt manner to such requests.

3. Both countries will share such information through the Joint Economic Committee. These exchanges of information will be confidential.

Section 7 - Private Sector

1. In the maintenance and future development of this Framework, both countries recognize the important role of the private sector in enriching bilateral economic relations and will promote business development initiatives with a focus on enhancing both countries’ capacities in innovation and in the knowledge-based economy.

2. Canada and Japan acknowledge the value of responding in an effective and timely manner to the concerns of the Canadian and Japanese private sectors and of engaging key groups to realize the benefits of private sector innovation and initiative.

3. Both countries are committed to seeking the advice of the private sector, where appropriate, in their respective countries on matters related to the work of the Joint Economic Committee, the priority areas of cooperation and the Joint Study.

4. With a view to building strong links between the Canadian and Japanese Governments and their respective private sectors, members of the private sectors may submit opinions to the Joint Economic Committee for its consideration.

Signed at Busan this nineteenth day of November 2005.

Attachment I | Attachment II