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ARTICLE · 02 OCTOBER 2026

Expanding Into Canada: The Comprehensive And Progressive Agreement For Trans-Pacific Partnership Considerations

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) represents a transformative opportunity for Canada-Japan trade relations, with Japanese foreign direct investment in Canada reaching $54.8 billion as of 2025. This free trade agreement between Canada and 11 Pacific economies eliminates customs duties and streamlines market entry processes, creating significant advantages for international businesses seeking to expand into the Canadian market.

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The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) is a free trade agreement (“FTA”) between Canada and 11 other economies: Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam. Prior to this agreement, Canada already had FTAs with many members, including Chile, Peru and Mexico.

The inclusion of Japan in the CPTPP marks a significant opportunity for Canada-Japan trade relations. As of 2025, foreign direct investment (“FDI”) stock from Japan in Canada was valued at $54.8 billion, making Japan Canada’s largest source of FDI. Additionally, imports from Japan were valued at $21.1 billion, consisting largely of vehicles, machinery and equipment, and scientific and precision instruments (mainly for medical use).

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