NOTES

JAPAN'S PROFILE

Economic IndicatorsGross domestic product (GDP) at purchasing power parity (PPP):US$5.6 trillion (2017)GDP per capita at PPP: US$44,900 (2017)Population: 126.8 million (2017)International merchandise exports and imports: 28.1% of GDP at official exchangerates (2017)Canada's 4 largest merchandise trade partner (2017)Canada's 8 largest services trade partner (2016)Ease of Doing Business ranking: 34 among 190 countries (2017)World Competitiveness ranking: 9 among 137 countries (2017)

Notable Trade and Investment Agreements between Canada and JapanCanada–Japan Economic Partnership Agreement (under negotiation)Comprehensive and Progressive Agreement for Trans-Pacific Partnership (signed,but not in force)

Marie Dumont

Economics, Resources and International Affairs Division Parliamentary Information and Research Service

Publication No. 2018-579-E 26 September 2018

CANADA–JAPAN

The Library of Parliament's Trade and Investmentseries provides information on Canada's trade andinvestment relationship with the world and withselected countries. It also describes the traderelationship of each of Canada's 10 provinces andthree territories with the world. In addition, it presentsCanada's merchandise trade relationship with each ofthe United States' 50 states.

All figures were prepared using Statistics Canada dataavailable in spring 2018.

To see the data tables used to generate the figures,view the HTML version of this profile at

.

The merchandise trade data are customs-based; theservices trade data and foreign direct investment dataare balance of payments–based.

Numbers in this profile have been rounded.

All dollar amounts are in Canadian dollars unlessotherwise noted.

Definitions appear at the end of this profile.

The five most highly valued merchandise export andimport categories have been identified based on2017 values.

In the Economic Indicators section, data for GDP atPPP, GDP per capita at PPP, population, andinternational merchandise exports and imports as ashare of GDP are from the World Bank's WorldDevelopment Indicators database. The merchandiseand services trade rankings are based on StatisticsCanada data. The Ease of Doing Business ranking isfrom the World Bank's Doing Business project. TheWorld Competitiveness ranking is from the WorldEconomic Forum's Global Competitiveness Report.

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Trade andInvestment Series 2017

Bilateral merchandise trade in 2017:$29.4 billion

Exports: $11.8 billion, a10.4% increase from 2016Imports: $17.5 billion, a10.9% increase from 2016

Trade deficit in 2017: $5.7 billion, anincrease from $5.1 billion in 2016

Exports in 2017: 2.2% of thetotal value of Canadian exports, anincrease from 2.1% in 2016

Imports in 2017: 3.1% of thetotal value of Canadian imports, anincrease from 3.0% in 2016

Highest-valued exporters in 2017:

British Columbia – $4.5 billion, anincrease from $3.8 billion in 2016Alberta – $1.8 billion, an increasefrom $1.7 billion in 2016

CANADA'S MERCHANDISE TRADE WITH JAPAN

-10

-5

0

5

10

15

20

1997 2002 2007 2012 2017

Exports Imports Balance

Merchandise Trade($ billions)

0%

1%

2%

3%

4%

5%

1997 2002 2007 2012 2017

Exports Imports

Share of the Total Value of Canadian Trade

Saskatchewan, 9.5%

Quebec, 11.5%

British Columbia, 38.3%

Territories, 0.0%Atlantic, 4.8%

Manitoba, 6.9%

Ontario, 14.1%

Alberta, 14.9%

Share of Exports by Province/Territory

Exports in 2017:

Resource-based goods – 49.6%, anincrease from 48.1% in 2016Manufactured goods – 50.4%, adecrease from 51.9% in 2016

Highest-valued exports in 2017: Coaland canola seeds, togetheraccounting for 25.7% of the total valueof Canadian exports to Japan

Coal: $1.7 billion, an increase from$1.1 billion in 2016Canola seeds: $1.4 billion, anincrease from $1.2 billion in 2016

Imports in 2017:

Resource-based goods – 8.4%, anincrease from 1.7% in 2016Manufactured goods – 91.6%, adecrease from 98.3% in 2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997 2002 2007 2012 2017

Manufacturing Resources

Share of Exports by Sector

0

2

4

6

8

2010 2011 2012 2013 2014 2015 2016 2017

Energy and related Oilseeds‚ seeds‚ etc.Ores‚ slag‚ ash Meat and edible offalWood‚ articles thereof

Most Highly Valued Exports by Product Category($ billions)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997 2002 2007 2012 2017

Manufacturing Resources

Share of Imports by Sector

Highest-valued imports in 2017: Motorvehicles and gold, together accountingfor 31.8% of the total value ofCanadian imports from Japan

Motor vehicles: $4.2 billion, anincrease from $3.7 billion in 2016Gold: $1.4 billion, an increase from$239.2 million in 2016

Largest merchandise trade deficitin 2017: Machinery and equipment, at$6.8 billion

Largest merchandise trade surplusin 2017: Agriculture and food, at$4.4 billion

0

5

10

15

20

2010 2011 2012 2013 2014 2015 2016 2017

Motor vehicles‚ parts Machinery and equipmentElectrical‚ electronics‚ etc. Prec. metals‚ jewellery‚ coinsSpecialized instruments

Most Highly Valued Imports by Product Category($ billions)

-8 -6 -4 -2 0 2 4 6

Agriculture and food

Metals‚ mines and energy

Forest products

Machinery and equipment

Transportation equipment

Clothing and textiles

Other manufactured goods

Trade Balance by Product Category($ billions)

Bilateral services trade in 2016:$4.2 billion

Exports: $1.9 billion, a7.8% increase from 2015Imports: $2.3 billion, a3.4% increase from 2015

Trade deficit in 2016: $373.0 million, adecrease from $437.0 million in 2015

Services trade deficit in 2016: Largelydue to commercial services trade

Commercial services exports:$784.0 millionCommercial services imports:$1.3 billion

CANADA'S SERVICES TRADE WITH JAPAN

-2

-1

0

1

2

3

4

1996 2001 2006 2011 2016

Exports Imports Balance

Services Trade($ billions)

0.0

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016Exports Exports Exports Exports ExportsImports Imports Imports Imports Imports

Commercial services (Exports)Travel services (Exports)Transportation and government services (Exports)Commercial services (Imports)Travel services (Imports)Transportation and government services (Imports)

Services Trade by Type($ billions)

Stock of Canadian direct investment inJapan in 2017: $4.8 billion, an8.3% decrease from 2016

Japan as a destination for Canadianforeign direct investment among the127 countries for which data wereavailable for 2017: 25 largest

Stock of Japanese direct investment inCanada in 2017: $29.6 billion, a0.4% decrease from 2016

Japan as a source of foreign directinvestment in Canada among the59 countries for which data wereavailable for 2017: 6 largest

0.4% of Canada's foreign directinvestment stock was in Japanin 2017, a decrease from 0.5%in 2016

3.6% of the foreign direct investmentstock in Canada was of Japaneseorigin in 2017, a decrease from 3.7%in 2016

CANADA'S FOREIGN DIRECT INVESTMENT WITH JAPAN

0

5

10

15

20

25

30

35

1997 2002 2007 2012 2017

Canadian investment in JapanJapanese investment in Canada

Stock of Foreign Direct Investment($ billions)

th

th

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

1997 2002 2007 2012 2017

Canadian stock of foreign direct investment (FDI) in Japan as % of total Canadian FDIabroad

Stock of FDI in Canada of Japanese origin as % of total FDI in Canada

Share of Foreign Direct Investment Stock

DEFINITIONS

Definitions Used Throughout the Series

Balance of payments–based dataData that calculate trade flows using surveys of the international trade and investment activity of firms and other entities.

Customs-based dataData compiled from declarations that are filed with the Canada Border Services Agency and that are used to track the flow ofgoods into and out of Canada, with one exception: exports to the United States. Since 1990, customs-based data on Canadianexports to the United States have been based on declarations filed with U.S. Customs and Border Protection.

Gross domestic product (GDP)Measure of an economy's total production in a given year. As one entity's income is another entity's spending, GDP is equal tothe total value of final sales or to the total value of incomes.

Manufactured goodsFinished or semi-finished products resulting from the transformation of materials and substances into new products(North American Industry Classification System, or NAICS, codes 31 to 33), and the output of establishments primarily engagedin operating electric, gas and water utilities (NAICS code 22).

Merchandise tradeTrade in physical goods, such as cars, wheat and iron ore.

Resource-based goodsProducts of the agriculture, forestry, fishing and hunting sector (North American Industry Classification System, or NAICS,code 11), and of the mining, quarrying, and oil and gas extraction sector (NAICS code 21).

Services tradeTrade in travel, transportation, government and commercial services. Travel services are goods and services purchased abroadby travellers, with one exception: cross border transportation. Transportation services are the transportation of goods andcross‑border travellers, and related services. Government services arise largely from official representation and military activities,and some governmental commercial activities. Commercial services are all other services, such as management, financial orengineering services; this category also includes charges for the use of intellectual property.

Trade balanceDifference between the value of exports and the value of imports. There is a trade surplus if the value of exports exceeds thevalue of imports. There is a trade deficit if the value of imports exceeds the value of exports.

Definitions Specific to the Profiles for Countries and Regions

Foreign direct investment (FDI)Investment that provides an investor with ownership of at least 10% voting equity in an enterprise that is located in a countryother than the investor's country of residence. The stock of FDI is the value of the accumulated equity owned by investorsabroad; the stock changes from year to year based on flows of FDI.

Purchasing power parity (PPP)Ratio of the prices in two countries for identical goods and services. It is used to adjust economic indicators to account forinternational price differences. With a calculation of GDP at PPP, a given good or service has the same price in each country.

Definition Specific to the Profile for Canada's Foreign Direct Investment Relationship with the World

Foreign majority-owned affiliatesEnterprises in which a foreign business owns more than 50% of voting shares.

Definitions Specific to the Profile for the European Union

EU-13The 13 countries that joined the European Union between 2004 and 2013: Bulgaria, Croatia, Cyprus, Czechia, Estonia, Hungary,Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia.

EU-15The 15 countries that became members of the European Union before 2004: Austria, Belgium, Denmark, Finland, France,Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.

© Library of Parliament 2018

Definitions Specific to the Profiles for Provinces and Territories

Basic pricesPrices received by sellers. They exclude both taxes and subsidies on products.

Market pricesPrices paid by buyers. They include taxes net of subsidies on products.