Canada - Japan Economic Framework

Attachment I

PRIORITY AREAS OF COOPERATION

A. Social Security Agreement

Recognizing the significance of a social security agreement in facilitating two-way investment and its importance to persons who have lived or worked in both countries, Canada and Japan welcome an agreement in principle following the last round of negotiations held October 11-13, 2005, in Ottawa. The two countries will endeavour to expedite the signing and domestic processes necessary for the implementation of the agreement.

B. Cooperation on Anticompetitive Activities

A cooperation agreement between Canada and Japan on anticompetitive activities came into effect on October 6, 2005. The agreement contains provisions for enforcement cooperation and notification on enforcement actions that may affect the other country. The two sides will cooperate closely in, inter alia, combating cross-border cartels by active implementation of the agreement.

C. Food Safety Cooperation

Given the increase in globalized food trade, new inspection technologies and new risks, there are many challenges that both countries share in the area of food safety. The two governments will cooperate and share experiences to respond to these challenges through enhanced dialogue and a joint work plan between the relevant Canadian and Japanese authorities.

D. Customs Cooperation

Reaffirming the importance of customs cooperation, especially its usefulness in combating smuggling and enhancing the security and facilitation of the international trade supply chain, and recognizing the value of exchanges of information and expertise in customs operations, the two customs administrations signed a bilateral customs cooperation arrangement on June 2, 2005.

E. Trade Facilitation

Reaffirming the importance of the multilateral negotiations on trade facilitation following the July 2004 negotiated outcome at the World Trade Organization (WTO) and in recognition of the close link to trade facilitation of the work on expediting and simplifying trade procedures to expand world trade and enhance administrative efficiency, the two governments will continue to work together through their contact in relevant venues at the WTO and in other relevant fora, such as the Organisation for Economic Co-operation and Development (OECD) and Asia-Pacific Economic Cooperation (APEC), to progress the work of the WTO Negotiating Group on Trade Facilitation towards a successful conclusion.

F. Transportation

With a view to supporting people-to-people, commercial and cultural exchanges between the two countries, the two governments will continue the existing dialogue on air transportation between their aeronautical authorities.

G. Investment

The two governments will collaborate on events aimed at promoting the mutual benefits and conditions of two-way investment so that companies in both countries can capitalize on the benefits of engagement in global production and supply chains. Leaders from the Canadian and Japanese business communities will be invited to participate in these high-profile programs. Japan External Trade Organization’s (JETRO) initiatives and Investment, Science & Technology Branch of International Trade Canada’s programs for the promotion of mutual investment will be discussed. The Governments of Canada and Japan will also discuss points of interest and commonality on investment policy in the bilateral, regional and multilateral context.

In this regard, the two governments welcome the recent development on bilateral investment promotion cooperation, arranged by means of a Memorandum of Understanding between JETRO and International Trade Canada, which aims to expand comprehensive collaboration between the two institutions. The two governments believe that such an arrangement will facilitate the promotion of two-way investment by ensuring efficient and smooth implementation of investment promotion activities between the two countries. International Trade Canada launched a series of investment promotion seminars in Japan, beginning in March 2005, with a view to continuing such seminars in Tokyo and other locations in both Canada and Japan in 2005 and 2006 with the cooperation of JETRO. The two governments welcome the co-sponsorship by the two institutions of the “Invest Japan Seminar: Japan, Your Stepping Stone to Asia,” which was held on May 27, 2005, in Toronto. Continuation of efforts to develop investment promotion activities under this Memorandum of Understanding is welcomed by both countries.

H. Science and Technology

The two governments seek to broaden the scope and role of the current cooperation under the Canada-Japan Agreement on Cooperation in Science and Technology with a view to (i) facilitating and increasing public and private sector exchanges; (ii) fostering collaboration in leading areas of scientific and technological innovation, such as life sciences, information and communication technologies, earth sciences, environment, space, renewable energy and advanced materials; (iii) developing programs and activities to support women in science, engineering and technology; and (iv) building closer ties between advanced technology related institutions and the respective private sectors toward the commercialization of new technologies.

I. Information and Communication Technology (ICT)

The two governments will enhance their efforts to promote the exchange of information on their respective ICT strategies to realize an ubiquitous network society and will share knowledge on the development of new markets and opportunities enabled by increasingly ubiquitous technologies. The Canada-Japan Telecommunications Policy Consultations will continue to provide a forum to exchange perspectives on telecommunications policy issues and emerging technologies, with a view to exchanging information on best practices and enhancing collaboration. The thirteenth consultation was held on October 3 and 4, 2005, in Tokyo, on such issues as promotion of broadband, network migration to Internet Protocol and cooperation on the World Summit on the Information Society process. The two governments will also work together to advance common objectives on ICT issues in multilateral fora, such as the International Telecommunications Union, WTO, APEC and OECD.

J. E-Commerce

Considering the existing informal cooperation between Canada and Japan in this sector, the two governments will develop a strategy to better integrate and enhance those exchanges at the private sector level with a view to promoting more efficient communication and implementing agreed upon e-commerce solutions through activities in a variety of fora, such as WTO, OECD and APEC. The two governments will consider ways to increase cooperation in the area of electronic commerce with a view to fostering, preserving and ensuring a predictable environment for the conduct of electronic commerce to encourage cross-border transactions.

K. E-Government

Canada and Japan have exchanged information regarding their respective approaches and progress on e-Government and are committed to continuing this valuable dialogue. To that end, Canada and Japan will continue to collaborate in a variety of fora, such as the OECD and APEC, for the promotion of their e-Government initiatives with a view to providing the public with better access to government information over the Internet for the facilitation of their business and other activities.

L. Energy and Natural Resources

The two governments will continue the exchange of policy and technical expertise for the development and use of natural resources and energy in a sustainable manner through existing frameworks, including relevant multilateral fora. The two governments will also consult, as appropriate, on ways to enhance technical cooperation in areas of mutual interest, such as the work presently underway to establish a partnership for onshore natural gas hydrate production research.

M. Climate Change

With a view to building on the existing successful bilateral cooperation for the negotiation and implementation of the Kyoto Protocol, Canada and Japan will conduct ad hoc consultations on climate change policy involving the participation of officials from key departments, ministries and agencies from both countries. The goal is to promote more intensive cooperation through informal meetings on the key policy areas under consideration for the post-2012 period and implementation of the Kyoto Protocol. In this regard, the Government of Japan welcomes Canada’s hosting of the Eleventh Session of the Conference of Parties to the Climate Change Convention and the first meeting of the Parties to the Kyoto Protocol in Montreal from November 28 to December 9, 2005.

N. Tax Convention

Recognizing that there are a few key areas in the existing Canada-Japan tax convention where each side has concerns, Canada and Japan will discuss their existing convention and exchange views on issues raised by both countries.

O. Tourism Promotion

The two governments will cooperate on increasing tourism in both directions between Canada and Japan. In this regard, the Government of Canada fully recognizes the importance to the Government of Japan of the “Visit Japan Campaign.” The Government of Canada also recognizes that it has been designated as an “important market area” under the “Visit Japan Campaign” and that various market research activities will be conducted. The two governments have expressed their intention to make their best efforts to increase, by 2010, the volume of tourist flow between the two countries to one million: 800,000 Japanese tourists to Canada; and 200,000 Canadian tourists to Japan. To this end also, the two governments further express their continued commitment to the Canada-Japan Tourism Conference.