Presentation to Government Canadian Chamber of Commerce in
Presentation to Government Canadian Chamber of Commerce in Japan December 9, 2010
Overview • CCCJ introduction • Brief comments on bilateral economic relationship • Why we support early conclusion of EPA • Our main sector issues • Model for private sector dialogue
What is CCCJ? • Voice of Canadian business community in Japan since 1975 • Over 300 members include largest Canadian corporations operating in Japan and many small and mediumsized businesses • On-the-ground expertise on business developments and trends
CCCJ Role • CCCJ welcomes opportunity to offer input into trade discussions between Canadian and Japanese officials • Ready to work with other private-sector voices in Canada and Japan on ongoing basis • Goal is to promote stronger, more vibrant economic relationship between Canada and Japan
Bilateral Trade • Despite impressive rebound in trade volumes in 2010, bilateral trade is falling in relative terms as other markets (China, India, etc. ) grow – Japan has slipped to become Canada’s 4 th largest trade partner • Global economic situation has also seen some Canadian firms in Japan downsize as focus turns elsewhere
Trade Challenge • Perception remains that return on investment for equal effort may be better elsewhere • NAFTA allows Japanese firms to manage North American operations from U. S. base • Lack of attention by media and business on bilateral trade and investment opportunities translates into lack of attention by government
Synergies Exist • We need to capitalize on natural synergies – Japan has capital, technological leadership, markets – Canada has resources, technology • Exciting opportunities for expanded trade and investment exist • Window of opportunity is now • U. S. downturn reinforces need for Canada to diversify
Time for EPA • CCCJ urges both governments to pursue EPA as matter of priority • negotiation will help raise profile of bilateral trade relationship • Others are pursuing EPAs or expanded trade – we can’t afford to fall behind • Both government and private sector benefit when foundation exists for active dialogue
Benefits of EPA • Healthy trade relationship depends on government policies that promote open markets • Tariffs already low in most areas • But - non-tariff barriers remain • EPA allows governments to identify priorities of greatest interest to business communities in more timely manner
EPA Advantages • Japan/Canada EPA will: – Open new markets for goods and services – Promote innovation and competition – Enhance living standards – Secure access to resources, technology and investment – promote transparency – Increase flows of people
Risk of Failure • Many nations and regions looking to new trading arrangements • Lack of Canada-Japan EPA risks compromising common access to mutually beneficial flow of bilateral trade and investment for Canadian and Japanese companies • Could also result in diminished competitiveness
Ready to Talk • We look forward to detailed discussions with government on those issues identified in our paper • Our paper raises issues that need to be addressed now • No need to wait for EPA negotiations • Other sectors may come to our attention – We will raise issues as they arise
Specific Issues • Four sector priorities are identified in our detailed paper 1. 2. 3. 4. Financial services Air transport Forest and building products Food and agricultural products
Other Issues • Non-traditional issues also of concern to CCCJ members 1. Elimination of JET program 2. Tax deductibility of school fees, spousal employment • We’ve had success in past when raising similar concerns with government (i. e. pension benefits)
Ongoing Dialogue • Model for ongoing private sector/government dialogue exists – Japanese Cabinet Office Expert Committee of the Japanese Investment Council – Identified and resolved issues relevant to foreign firms • Would complement existing framework for dialogue • Similar councils can be set up in Canada and Japan
Thank You • • Thank you for inviting us to comment We’d be pleased to answer your questions • • • Eric De Groot, President, CCCJ Shawn Lawlor, Chair, EPA Committee, CCCJ Brian Smith, Executive Director (Interim), CCCJ
- Slides: 16