Japan In Trade

Japan’s trade has been dominated by the high-yielding manufacturing industry. While the government has been trying to push exports, the country’s trade still comprises of huge imports.

Japan Trade: Role in International Economy

Japan is a member of several important international organizations such as the IMF, the WTO, and the OECD. It is also a leading member of the Asian Development Bank, which has been constituted to monitor and regulate economic operations in the region.

Japan’s trade has been dominated by the high-yielding manufacturing industry. While the government has been trying to push exports, the country’s trade still comprises of huge imports.

Japan Trade: Role in International Economy

Japan is a member of several important international organizations such as the IMF, the WTO, and the OECD. It is also a leading member of the Asian Development Bank, which has been constituted to monitor and regulate economic operations in the region.

Japan trade is organized by World Trade Centers (WTC) located at Tokyo and Osaka. Each of the WTCs is an authorized member of the World Trade Centers Association, in the US. The Japanese WTCs promote ‘Peace through International Trade’ program to foster trade relations among different nations.

Japan Trade: Import and Export Statistics

The 2008 data compiled by Japan External Trade Organization (JETRO) reveals the value of Japan’s exports and imports at $0.77 trillion and $0.75 trillion, respectively. Since its previous financial year, Japan’s total exports increased by 8.8% and imports by 21.74 %. Its major exports were automobiles and electronic machinery which accounted for 43% of Japan’s total export trade.

Japan’s major export items are:

• Automobiles
• Electronic machinery
• Automotive parts
• Chemical
• Semi-conductors

Primary items for Japanese import are:

• Crude oil
• LNG
• Textiles
• Electronic components
• Fishes
• Audio and visual apparatus
• Optical instruments
• Metals

Japan’s main trading partners are the United States, EU and several Asian nations.

Japan Trade: Ports

Large share of Japan trade takes place through ocean or sea route. Some of the major trade ports in Japan are:

• Abashiri
• Chiba
• Aioi
• Fukuyama
• Hiroshima
• Hitachi

Japan Trade: Trade Barriers

The Japanese government levies both consumption tax and customs tariffs over the country’s import trade. Customs tariffs are classified as:

• General rates: Primary tariffs applicable as per the law.
• Temporary rates: Additional tariffs applied for a specific period.
• Preferential rates: It includes customs duty on imports from developing countries. It is lower than general rates.
• WTO rates: Imports duty rates as authorized by the WTO.

Since April 2009, an additional 5% consumption tax has been imposed on imported goods. They include imported goods such as leather products and knitwear which are exempted from this tax.

Japan holds strategic position in international trade due to its remarkable industrial growth. By diluting its trade barriers, Japan can assume a more significant role in free trade market.