Trade Relations and Trade Policy of Japan

Historical Background
Edo/Tokugawa Period In 17th century, Japan stopped external trade in fear of colonization. So-called Japanese isolation lasted more than 250 years.
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Historical Background
Meiji Era Japanese isolation ended by Admiral Perry incident. (1858) Concessions and trade privileges given to the US, later to Britain. The incident caused outrage in Japanese society and led to end of Shogunate regime.
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Historical Background
One by one, Emperor Meiji took back all unfair trade privilieges through using political climate and effective economic policies. By the beginning of 20th century, Japan became an industrialized country. Japan opened itself up to foreign trade, this time willingly.
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Main Indicators
GDP (PPP): $ 4,332,537 (2010) 3rd largest economy. GDP per capita: $ 33,994 (2010) Credit rating: Given AAA or AA by rating institutions. Inflation: - 0.2% Unemployment rate: 4.5% Member of APEC (Asian-Pasific Economic Organization) WTO (Since 1995), OECD, G-20 and G-7.
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Currency Policy: 1 = $ 0.0128 1 = 0.0098

Trade Datas of Japan

Merchandise Exports (f.o.b.): $ 769.839 mln Merchandise Imports (f.o.b.): $ 694.052 mln Current Account Balance: + $ 195.759 mln Trade to GDP ratio: 30,8% Trade per capita: $ 12.418

Trade Datas of Japan

Japans the 4th largest exporter and 4th largest importer of the world. Share in world total exports: 5% Share in world total imports: 4,5%

Trade Datas of Japan

Largest trade partners Japan exports to: 1- China (19,4%) 2- United States (15,6%) 3- EU (11,3%) 4- S. Korea (8,1%) 5- Chinese Taipei (6,8%)

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Trade Datas of Japan

Largest trade partners Japan imports from: 1- China (22,1%) 2- United States (10%) 3- EU (9,6%) 4- Australia (6,4%) 5- Saudi Arabia (5,2%)

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Trade Datas of Japan

Primary commodities Japan exports: transport equipment, motor vehicles, semiconductors, electronics, electrical machinery, chemicals.

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Trade Datas of Japan

Primary commodities Japan imports: machinery and equipment, fuels, foodstuffs, chemicals, textile, raw materials.
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Japanese Trade Policy

The main trade policy instrument of Japan is the tariff. Most imports enter Japan duty free or are subject to low tariff rates. Average tariff rate: 6.1% Yet, some countries like Malaysia and Brunei enjoy lower tariff rates in Japan: For instance; for Malaysia the average is 3.3%.

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Japanese Trade Policy

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Japanese Trade Policy

Import quotas: On some certain fish products, and products that are harmful for ozone layer. Import prohibitions: All goods from North Korea, nuclear and weapon related items from Iran. No export taxes. No levies. Export restrictions: To export endangered animals, certain seeds, some agricultural products, forestry and fishery products, official approval is needed.
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Japanese Trade Policy

Japans highly protective of its agriculture: While almost zero rate tariff is applied for manufactured goods, the average tariff rate for agricultural items is 17,1%. Subsidies: Japan indicated 86 subsidy schemes to assist agriculture, forestry and fisheries, industry, finance and transport sectors.

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Japanese Trade Policy

New fighter aircraft project will likely take a lot of subsidies, as well. Japan has been carrying out a liberalization policy in its energy sector, since the country heavily relies on imported energy. (82,5%)

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A Summarized Dispute Case

In 1995, US, Canada and European Communities complained that Japans liqor tax system discriminates their imported alcoholic beverages. Japans tax system was found inconsistent with GATT article III:2. By presenting some modalities, Japan convinced the complainants and solved the dispute. (1998)
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Sources
OHNO, Kenichi. The Economic Development of Japan: The Path Traveled byJapan as a Developing Country, GRIPS Development Forum, Tokyo,2006. www.wto.org (World Trade Organization) KINCAL, Ali. Japonyan n Bilgi Toplumuna Gei i, http://www.scribd.com/doc/55944958/Japonya, (22 Aral k 2011) www.jetro.go.jp (Japan External Trade Organization)

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