Japan
reported a trade deficit equivalent to 907 Million JPY in May of 2012.
Historically, from 1979 until 2012, Japan Balance of Trade averaged
652.9 Billion JPY reaching an all time high of 1608.7 Billion JPY in
September of 2007 and a record low of -1476.9 Billion JPY in January of
2012. Exports have been the main engine of Japan's economic growth in
the past six years. Japan imports raw materials and processes them into
high technology products. Japan’s major exports are: consumer
electronics, automobiles, semiconductors, optical fibers,
optoelectronics, optical media, facsimile and copy machines. Its main
trading partners are The United States, China and European Union. This
page includes a chart with historical data for Japan Balance of Trade
For
many years, export promotion was a large issue in Japanese government
policy. Government officials recognized that Japan needed to import to
grow and develop, and it needed to generate exports to pay for those
imports.
After 1945, Japan had difficulty exporting enough to pay for its
imports until the mid-1960s, and resulting deficits were the
justification for export promotion programs and import restrictions.
The belief in the need to promote exports is early strong and part of Japan's self-image as a "processing
nation." A processing nation must import raw materials but is able to
pay for the imports by adding value to them and exporting some of the
output. Nations grow stronger economically by moving up the industrial
ladder to produce products with greater value added to the basic inputs.
Rather than letting markets accomplish this movement on their own, the
Japanese government felt the economy should be guided in this direction
through industrial policy.
Japan's methods of promoting exports has taken two paths. The first
was to develop world-class industries that can initially substitute for
imports and then compete in international markets. The second was to provide incentives for firms to export.
During the first two decades after World War II,
export incentives took the form of a combination of tax relief and
government assistance to build export industries. After joining the International Monetary Fund
(IMF) in 1964, however, Japan had to drop its major export incentive —
the total exemption of export income from taxes — to comply with IMF
procedures. It did maintain into the 1970s, however, special tax
treatment of costs for market development and export promotion.
Once chronic trade deficits
came to an end in the mid-1960s, the need for export promotion policies
diminished. Virtually all export tax incentives were eliminated over
the course of the 1970s. Even JETRO,
whose initial function is to assist smaller firms with overseas
marketing, saw its role shift toward import promotion and other
activities. In the 1980s, Japan continued to use industrial policy to
promote the growth of new, more sophisticated industries, but direct
export promotion measures were no longer part of the policy package.
The 1970s and 1980s saw the emergence of policies to restrain exports
in certain industries. The great success of some Japanese export
industries created a backlash in other countries, either because of
their success per se or because of allegations of unfair competitive
practices. Under General Agreement on Tariffs and Trade
(GATT) guidelines, nations have been reluctant to raise tariffs or
impose import quotas. Quotas violate the guidelines, and raising tariffs
goes against the general trend among industrial nations. Instead, they
have resorted to convincing the exporting country to "voluntarily"
restrain exports of the offending product. In the 1980s, Japan was quite
willing to carry out such export restraints. Among Japan's exports to
the United States, steel, color television sets, and automobiles all were subject to such restraints at various times
U.S. goods and services trade with Japan totaled $267 billion in 2011
(latest data available for goods and services trade combined). Exports
totaled $113 billion; Imports totaled $154 billion. The U.S. goods and
services trade deficit with Japan was $40 billion in 2011.
Japan
is currently our 4th largest goods trading partner with $195 billion in
total (two ways) goods trade during 2011. Goods exports totaled $66
billion; Goods imports totaled $129 billion. The U.S. goods trade
deficit with Japan was $63 billion in 2011.
Trade in services with
Japan (exports and imports) totaled $72 billion in 2011 (latest data
available for services trade). Services exports were $47 billion;
Services imports were $25 billion. The U.S. services trade surplus with
Japan was $22 billion in 2011.
Launched in November 2010, the U.S.-Japan Economic Harmonization
Initiative (EHI) is a new bilateral Initiative that aims to contribute
to our countries’ economic growth by promoting cooperation to harmonize
approaches that facilitate trade, address business climate and
individual issues, and advance coordination on regional issues of common
interest.
Japan was the United States' 4th largest goods export market in 2011.
U.S.
goods exports to Japan in 2011 were $66.2 billion, up 9.4% ($5.7
billion) from 2010, and up 1.4% from 2000. U.S. exports to Japan
accounted for 4.5% of overall U.S. exports in 2011.
The top export
categories (2-digit HS) in 2011 were: Optic and Medical Instruments
($7.7 billion), Machinery ($5.7 billion), Cereals (corn and wheat) ($5.6
billion), Electrical Machinery ($5.0 billion), and Aircraft ($4.8
billion).
U.S. exports of agricultural products to Japan totaled
$14.1 billion in 2011, our 4th largest export market. Leading categories
include: coarse grains ($3.9 billion), red meats (fresh/chilled/frozen)
($2.8 billion), wheat ($1.4 billion), and soybeans ($954 million).
U.S.
exports of private commercial services* (i.e., excluding military and
government) to Japan were $47.0 billion in 2011 (preliminary data), 5%
($2.3 billion) more than 2010 and 43% greater than 2000 levels. Other
private services (business, professional, and technical services and
financial services), travel, and the royalties and license fees
categories accounted for most of U.S. services exports to Japan.
Japan was the United States= 4th largest supplier of goods imports in 2011.
U.S.
goods imports from Japan totaled $128.8 billion in 2011, a 6.9%
increase ($8.3 billion) from 2010, but down 12.1% from 2000. U.S.
imports from Japan accounted for 5.8% of overall U.S. imports in 2011.
The
five largest import categories in 2011 were: Vehicles ($41.0 billion),
Machinery ($31.2 billion), Electrical Machinery ($18.3 billion), Optic
and Medical Instruments ($6.9 billion), and Organic Chemicals ($3.0
billion).
U.S. imports of agricultural products from Japan totaled
$586 million in 2011. Leading categories include: snack foods
(including chocolate) ($54 million), wine and beer ($53 million), and
processed fruit and vegetables ($36 million).
U.S. imports of
private commercial services* (i.e., excluding military and government)
were $24.8 billion in 2011 (preliminary data) up 5% ($1.3 billion) from
2010, and up 51% from the 2000 level. The royalties and license fees,
the other private services (business, professional, and technical
services), and the other transportation (freight services) categories
accounted for most of U.S. services imports from Japan
The U.S. goods trade deficit with Japan was $62.6 billion in 2011, a
4.3% increase ($2.6 billion) over 2010. The U.S. goods trade deficit
with Japan accounted for 8.6% of the overall U.S. goods trade deficit in
2011.
Trade in Japan |
The United States has a services trade surplus of $22.2 billion with Japan in 2011 (preliminary data), up 5% from 2010.
On March 31 1854 representatives of Japan and the United States
signed a historic treaty. A United States naval officer, Commodore
Matthew Calbraith Perry, negotiated tirelessly for several months with
Japanese officials to achieve the goal of opening the doors of trade
with Japan.
For two centuries, Japanese ports were closed to all but a few
Dutch and Chinese traders. The United States hoped Japan would agree to
open certain ports so American vessels could begin to trade with the
mysterious island kingdom. In addition to interest in the Japanese
market, America needed Japanese ports to replenish coal and supplies for
the commercial whaling fleet.
On July 8,1853 four black ships led by USS Powhatan and
commanded by Commodore Matthew Perry, anchored at Edo (Tokyo) Bay. Never
before had the Japanese seen ships steaming with smoke. They thought
the ships were "giant dragons puffing smoke." They did not know that
steamboats existed and were shocked by the number and size of the guns
on board the ships.
At age 60, Matthew Perry had a long and distinguished naval
career. He knew that the mission to Japan would be his most significant
accomplishment. He brought a letter from the President of the United
States, Millard Fillmore, to the Emperor of Japan. He waited with his
armed ships and refused to see any of the lesser dignitaries sent by the
Japanese, insisting on dealing only with the highest emissaries of the
Emperor.
The Americans admired the courtesy and politeness of their hosts, and
thought very highly of the rich Japanese culture. Commodore Perry broke
down barriers that separated Japan from the rest of the world. Today the
Japanese celebrate his expedition with annual black ship festivals.
Perry lived in Newport, Rhode Island, which also celebrates a Black Ship
festival in July. In Perry's honor, Newport has become Shimoda's sister
city.
MITI
was created with the split of the Ministry of Commerce and
Industry in May 1949 and given the mission for coordinating
international trade policy with other groups, such as the Bank of Japan,
the Economic planning Agency, and the various commerce-related cabinet
ministries. At the time it was created, Japan was still recovering from
the economic disaster of World War II. With inflation rising and
productivity failing to keep up, the government sought a better
mechanism for reviving the Japanese economy.
MITI has been responsible not only in the areas of exports and
imports but also for all domestic industries and businesses not
specifically covered by other ministries in the areas of investment in
plant and equipment, pollution control, energy and power,
some aspects of foreign economic assistance, and consumer complaints.
This span has allowed MITI to integrate conflicting policies, such as
those on pollution control and export competitiveness, to minimize
damage to export industries.
MITI has served as an architect of industrial policy,
an arbiter on industrial problems and disputes, and a regulator. A
major objective of the ministry has been to strengthen the country's
industrial base. It has not managed Japanese trade and industry along
the lines of a centrally planned economy,
but it has provided industries with administrative guidance and other
direction, both formal and informal, on modernization, technology,
investments in new plants and equipment, and domestic and foreign
competition.
MITI lost some influence when the switch was made to a floating exchange rate between the United States dollar and yen
in 1971. Before that point, MITI had been able to keep the exchange
rate artificially low, which benefited Japan's exporters. Later, intense
lobbying from other countries, particularly the United States,
pushed Japan to introduce more liberal trade laws that further lessened
MITI's grip over the Japanese economy. By the mid-1980s, the ministry
was helping foreign corporations set up operations in Japan.
The decline of MITI was described Johnstone:
- ... by the early 1980s, when Western analysts first became aware of MITI, the ministry's glory days were over. In 1979 MITI lost its primary instrument of control over Japanese firms — allocation of foreign currency. The power, that is, to decide who could — and who could not — import technologies. [For example] ... MITI bureaucrats attempted to deny fledling Sony the $25,000 the company needed to license transistor technology from Western Electric.
The declining significance of MITI to Japanese companies made it a
less powerful agency within the bureaucracy, and by the end of the 20th
century, it was folded into a larger body. In 2001, it was reorganized
into the Ministry of Economy, Trade, and Industry (METI)
Matthew
Perry was the son of Sarah Wallace (Alexander) and Navy Captain,
Christopher R. Perry and the younger brother of Oliver Hazard Perry.
Matthew Perry received a midshipman's commission in the Navy in 1809,
and was initially assigned to the USS Revenge, under the command of his
elder brother. Under his brother's command, Matthew was a combatant in
The Battle of Lake Erie aboard the Flagship Lawrence and the replacement
flagship, Niagara.
Matthew's
early career saw him assigned to several ships, including the USS
President where he served as an aid to Commodore John Rodgers
(1772–1838), which had been in a victorious engagement over a British
vessel, HMS Little Belt, shortly before the War of 1812 was officially
declared. He continued in this capacity during the War of 1812. Perry
was also aboard the President when it engaged the HMS Belvidera
when Rodgers himself fired the first shot of the war at this vessel
with a following shot that resulted in a cannon bursting, wounding
Rodgers and Perry and killing and wounding others.
Perry transferred to the USS United States, and saw little fighting in
the war after that, since the ship was trapped in port at New London,
Connecticut. Following the signing of the Treaty of Ghent which ended
the conflict, he served on various vessels in the Mediterranean. Perry
served under Commodore William Bainbridge during the Second Barbary War.
He then served in African waters aboard USS Cyane during its patrol off
Liberia from 1819-1820. After that cruise, Perry was sent to suppress
piracy and the slave trade in the West Indies. Later during this period,
while in port in Russia, Perry was offered a commission in the Imperial
Russian Navy, which he declined.
Perry
had an ardent interest and saw the need for the naval education,
supporting an apprentice system to train new seamen, and helped
establish the curriculum for the United States Naval Academy.
He was a vocal proponent of modernizing the Navy. Once promoted to
captain, he oversaw construction of the Navy's second steam frigate the
USS Fulton, which he commanded after its completion. He was called "The
Father of the Steam Navy",
and he organized America's first corps of naval engineers, and
conducted the first U.S. naval gunnery school while commanding Fulton in
1839-1841 off Sandy Hook on the coast of New Jersey.
erry
returned in February 1854 with twice as many ships, finding that
the delegates had prepared a treaty embodying virtually all the demands
in Fillmore's letter. Perry signed the Convention of Kanagawa on March
31, 1854 and departed, mistakenly believing the agreement had been made
with imperial representatives.The agreement was made with the Shogun, the de facto ruler of Japan.
On
his way to Japan, Perry anchored off Keelung in Formosa (modern day
Taiwan), for ten days. Perry and crew members landed on Formosa and
investigated the potential of mining the coal
deposits in that area. He emphasized in his reports that Formosa
provided a convenient mid-way trade location. Formosa was also very
defensible. It could serve as a base for exploration as Cuba had done
for the Spanish in the Americas. Occupying Formosa could help the US to
counter European monopolization of the major trade routes. President
Franklin Pierce
declined the suggestion, remarking such a remote possession would be an
unnecessary drain of resources and that he would be unlikely to receive
the consent of Congress.
A group of Japanese aerospace company representatives traveled to Mexico
in May to learn about the country’s aerospace manufacturing footprint
and engineering prowess in the development of the industry. The group
visited aerospace clusters in the cities of Queretaro, Chihuahua,
Mexicali and Tijuana, which together concentrate more than half of the
country’s aerospace manufacturing.
he history of exchange between Japan and the Netherlands
started when the Rotterdam ship "de Liefde" drifted ashore in Japan
in 1600. From the end of the 16th to the beginning of the 17th
century, during the warring states period, Japanese culture was
strongly influenced by Portugal and Spain.
In 1639, the
Tokugawa Shogunate prohibited the Portuguese from visiting Japan
and decided to continue official trade only with the Netherlands.
In 1641, the Dutch Factory of the VOC was relocated from Hirado to
Deshina in Nagasaki and trade between Japan and the Netherlands
entered a new stage. At this time, the Netherlands was the only
country that provided Japan with western culture. During the Edo
period western culture into Japan was almost exclusively imported
through the Dutch Factory of the VOC in Nagasaki.
The celebration of the 400 year cultural and economical exchange
between Japan and the Netherlands has induced us to compose some
web pages and offerings of a number of beautiful, rare and
important items with an accent on this unique relationship between
both countries.
The European Commission will next Wednesday (18 July)
ask member states for a mandate to start talks with Japan on a
bilateral free-trade deal.
Advocates of a free-trade deal between the world's
fourth and fifth-largest economies are urging speed, highlighting the
potential to help the European Union's economic recovery. However, a
third of the EU's member states have reservations about Japan's
readiness for a deal and about the mandate that the Commission is
seeking.
At a meeting of trade ministers on 30
May, some countries argued that the 12-month scoping exercise conducted
to test the potential for an agreement should have probed more deeply
about Japan's commitment to reaching a deal. The Commission refused to
re-open the scoping exercise and insists that it has “clear commitments
written in stone” from Japan that would not normally be made at this
stage.
According to diplomats and EU officials, those
countries that will push for a tougher negotiating mandate include four
of the EU's largest economies: Germany, France, Italy, and Spain. The
others are Austria, Bulgaria, Greece, Romania, Slovakia and the Czech
Republic.
The car industry is an area of particular concern.
Manufacturers believe that Japan's standards and regulations –
non-tariff barriers – contribute to making it 30% more costly to own a
European car than a Japanese care.
There are also doubts about non-tariff barriers in
the health sector, and about rules for public tenders. The prospects of
agreement on public procurement have, however, improved, as the EU,
Japan and the US agreed in December to open up their markets for public
contracts.
Arguments for a quick agreement between the
Commission and member states, an EU official said, include the EU's need
for growth and the political situation in Japan, where the government
is pushing through reforms against a backdrop of waning public support
and divisions within the ruling party.
According to a Japanese official, the date of this
year's EU-Japan summit will be set only once the EU has agreed on a
mandate for free-trade talks. His EU contacts suggest that the aim is to
agree a mandate at the European Council in October. That would open up
the possibility of a summit in November, probably in Tokyo.
The trade mandate will also affect progress on
signing a framework agreement between Japan and the EU. That agreement
will be debated by European commissioners at their 18 July meeting.
Trade in Japan |
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