Ottawa and Tokyo should update their bilateral tax treaty to remove barriers to investment, the Canadian Chamber of Commerce and its Japanese counterpart said in a joint statement as both countries look to strengthen their economic relationship—and as Canada competes for global investors’ attention. (The Logic)

Talking point: Japan is Canada’s third-largest source of foreign direct investment, amounting to $55 billion in 2025. A tax treaty has been in place for 40 years, but business groups have long argued it is no longer fit for purpose. Despite Ottawa and Tokyo agreeing in 2007 to consider potential changes such as cutting taxes from some cross-border payments, they never got there. Matthew Holmes, executive vice-president at the Canadian chamber, said the short-term hit to tax revenue would be worth the payoff. “Try to make it so that the Japanese see real merit in those Canadian investments versus other markets they’re considering.” 

Sponsored Content

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts

Paid promotional content