Canadian pork in high demand . . .
Lowering tariffs leads to more favourable terms of trade and increased economic activity. In the case of Japan, that theory has proven true over the course of just a few short months. The CPTPP came into force in December last year and has already given a boost to Canadian farmers, with Canadian pork in particular building its market share and brand in Japan as a superior-quality product. Meanwhile, exports of Canadian beef to Japan have doubled in the first six months of 2019. New Zealand and Mexico, both CPTPP signatories, have also increased their pork and beef exports to Japan.
E.U. gaining market share in Japan . . .
The E.U.-Japan Economic Partnership Agreement has led to a similar boon for E.U. countries. From February 2019 (when the trade deal entered into force) through June, pork exports from the E.U. to Japan jumped by 13%. European wine also posted big gains with exports up 25% since the deal came online.
U.S. losing market share in Japan . . .
The U.S. decision to withdraw from the CPTPP has caused it to lose ground in the Japanese market. As Canadian and E.U. pork and wine exports to Japan soar, U.S. pork exports have declined by 3%, and wine by 2%. While analysts expect the U.S. to ratchet up pressure on Japan to conclude a bilateral deal after Prime Minister’s Abe’s recent win in the Upper House Election, Canadian exporters are encouraged to fully exploit this CPTPP early-mover advantage.
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