Topic > Understanding International Trade: Costs, Benefits and…

One of the reasons Canada is very interested in this agreement is because it is the third largest exporter of pork in the world. Also involved in the agreement is Japan, which is currently the largest importer of pork in the world. The cost of producing pork in Japan is more than double the cost of producing pork in Canada. Therefore, Japan prefers to import pork and concentrate its production efforts in a different sector, because the opportunity costs are too high. However, Japan is currently imposing very high tariffs on pork imports and has reached a deal with the Australian government, which only has to pay half the tariff. Canada is involved in the deal because it wants Japan to lower tariffs on Canadian pork, so that they (the Canadians) can be competitive in Japan. The article examines the effects this agreement has on some local Canadian industries. For example, the author explained that this deal could increase the amount of imported foreign auto parts and perhaps even dairy products, which could mean better selection and lower prices for consumers, but would also hurt some workers who operate locally in these activities. Currently the absence of foreign products in the Canadian dairy market means there is less choice at a higher price, but this also means that local farming communities can have stable incomes and can be