Home > Statistics > Handbook > Chapter 11 Trade, International Balance of Payments, and International Cooperation
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In 2011, the port of Tokyo celebrated the 70th anniversary of its opening as an international trading port. It now handles more international arriving and departing container shipments than any other port in the country and plays an important role as a massive logistics hub.
Japan has continued to produce a trade surplus since 1981. In terms of Japan's international trade on a customs clearance basis in 2010, exports (in FOB value) showed an annual increase of 24.4 percent to 67.4 trillion yen, the first increase in three years. Imports (in CIF value) grew by 18.0 percent to 60.8 trillion yen, the first increase in two years. As a result, Japan's trade surplus increased for the second consecutive year, growing by 148.4 percent from the previous year to 6.6 trillion yen.
Japan's 2010 exports increased by 0.2 percent from the previous year in terms of unit value index (the first increase in three years), and increased by 24.3 percent from the previous year in terms of quantum index (the first increase in three years).
Japan's 2010 imports increased by 3.6 percent from the previous year in terms of unit value index (the first increase in two years), and increased by 13.9 percent from the previous year in terms of quantum index (the first increase in four years).
In 2010, prices of both imports and exports marked a double-digit increase, representing a recovery reaction to the sharp fall in the previous year, which had been caused by the worldwide recession.
The leading export item category was transport equipment, which accounted for 22.6 percent of the total value exported, followed by general machinery and electrical machinery, making up 19.8 percent and 18.8 percent, respectively. Motor vehicles, which are in the transport equipment category, constituted 13.6 percent of the total export value, up 31.5 percent in quantity and 37.1 percent in value from the previous year. One characteristic of Japan's exports is an increasing proportion of high value-added products manufactured with advanced technology, such as motor vehicles, steel and integrated circuits.
The leading import item category was mineral fuels, which represented 28.6 percent of the total value imported, followed by electrical machinery and chemicals, with 13.3 percent and 8.9 percent, respectively. Crude petroleum and partially refined petroleum, both in the mineral fuels category, constituted 15.5 percent of the total import value, up 0.8 percent in quantity and 24.4 percent in value from the previous year. Japan's chief imports used to be energy resources and raw materials, though the proportion of product imports is gradually on the rise due to the further industrialization of the Asian region and overseas production relocations by Japanese companies.
Japan has maintained a trade surplus with Asia, the U.S.A. and the EU, while has been in a continuous deficit with the Middle East and Oceania.
Japan's 2010 trade balance with Asia resulted in 10.3 trillion yen in surplus, the first increase in three years (up 62.5 percent). Exports (in FOB value) totaled 37.8 trillion yen (up 28.9 percent), marking the first increase in three years; this was mainly due to the contributions for the increase in general machinery and electrical machinery. Imports (in CIF value) amounted to 27.5 trillion yen (up 19.7 percent), the first increase in two years; this was mainly attributed to the increase in electrical machinery and mineral fuels.
In recent years, mainland China has taken an increasingly greater share in imports and exports. In 2002, China outperformed the U.S.A. to become the largest source of imports to Japan. Further still, in 2009, China overtook the U.S.A. in exports as well to become the largest export destination from Japan. In 2010, Japan's trade with China amounted to 13.1 trillion yen in exports and 13.4 trillion yen in imports.
Japan's 2010 trade balance with the U.S.A. was 4.5 trillion yen in surplus, bigger than the previous year (up 38.5 percent from the previous year). Exports (in FOB value) amounted to 10.4 trillion yen (up 18.8 percent), the first increase in four years; major contribution for the increase was in transport equipment and general machinery. Imports (in CIF value) totaled 5.9 trillion yen (up 7.2 percent), the first increase in three years; the increase was due mainly to the contributions in chemicals and electrical machinery.
Japan's 2010 trade balance with the 27 member countries of the EU registered a surplus of 1.8 trillion yen (up 45.7 percent). Exports (in FOB value) totaled 7.6 trillion yen (up 12.8 percent), due mainly to the contributions for the increase in general machinery and transport equipment. Imports (in CIF value) totaled 5.8 trillion yen (up 5.5 percent), because of contributions for the increase in transport equipment and electrical machinery, etc.
Japan's current account has consistently recorded a surplus in recent years. In 2010, the surplus enlarged for the first increase in three years to 17.2 trillion yen, up 29.2 percent from the previous year. A breakdown of Japan's current account showed that its trade balance was 8.0 trillion yen in surplus, marking a twofold increase thanks to export growth against the backdrop of the recuperating world economy. Also shown is that the services balance was 1.4 trillion yen in deficit, a reduction in the deficit for the third consecutive year. The income balance decreased by 5.1 percent over the previous year to 11.7 trillion yen, marking a decline in the surplus for the third consecutive year.
On the other hand, the balance of the capital and financial account registered the sixth consecutive year of deficit (excess outflow), being 12.0 trillion yen in the red.
Japan's foreign assets (the balance of overseas assets held by residents in Japan) as of the end of 2010 amounted to 563.5 trillion yen, while its foreign liabilities (assets held in Japan by nonresidents) were 312.0 trillion yen. As a result, Japan's net foreign assets (foreign assets minus foreign liabilities) were 251.5 trillion yen.
Japan's foreign reserve assets remained at around $220 billion during the period from 1996 to 1998. However, they started to increase from 1999, reaching $1,096.2 billion at the end of 2010. This represented an increase of $46.8 billion (4.5 percent) from the end of the previous year.
The yen became super-strong against the U.S. dollar in Spring 1995, hitting a high of nearly 80 yen. The trend subsequently shifted to a progressively weaker yen, which eventually reached 143.79 yen in July 1998. After hovering between the 100 and 130 yen ranges for the most part since 1999, the yen began appreciating sharply in late 2008. As of the end of June 2011, the rate was 80.42 yen.
International cooperation donors are becoming increasingly diverse: official development assistance (ODA) by the government, direct investments and export credits by private corporations, donations by nonprofit organizations, aid activities by NGOs and volunteer citizen groups, etc. In addition, there are various forms of assistance, including bilateral assistance and assistance through multilateral institutions.
In the ODA framework, Japan has contributed to the growth of developing countries as the world's number-one ODA donor for ten consecutive years up until 2000. Recently, Japan's ODA budget has been declining because of the country's severe economic and financial situation. Its 2009 ODA spending (on the basis of net disbursement at current prices) was $9.5 billion, down 1.4 percent from the previous year, decreasing for the first time in two years.
In 2009, the 23 member countries of the Development Assistance Committee (DAC) of the OECD provided $120.0 billion in ODA. Of this total, Japan's ODA contribution accounted for approximately 8 percent, making Japan the fifth-largest contributor behind the U.S.A., France, Germany and the U.K. The ratio of Japan's ODA to Gross National Income (GNI) was 0.18 percent, or a decrease of 0.01 percentage point compared with that of the previous year.
Of the $9.5 billion in ODA provided by Japan in 2009, $6.0 billion or 63.4 percent was bilateral ODA (down 12.0 percent year-on-year), and $3.5 billion or 36.6 percent was ODA contributed through multilateral institutions (up 24.8 percent).
Bilateral ODA provided in 2009 consisted of $2.2 billion in grants-in-aid, $3.1 billion in technical cooperation, and $0.7 billion in loans, etc.
By region, bilateral ODA (including aid to Eastern European countries and graduated countries) was distributed as follows: Asia, 36.5 percent; Africa, 23.1 percent; Middle East, 8.2 percent; Europe, 2.6 percent; Latin America, 2.3 percent; and Oceania, 1.8 percent.
Bilateral ODA in 2009 (including aid to Eastern European countries and graduated countries) was broken down by purpose (on a commitment basis) as follows: 33.7 percent for improving the economic infrastructure (including transport and energy), followed in descending order by social and administrative infrastructure, and then the production sector.
In addition to the financial assistance described above, Japan has also been active in the areas of human resources development and technology transfer, both vital to the growth of a developing country, through its ODA activities. This not only contributes to sustainable economic growth, poverty reduction and improved living standards in developing countries, but also plays an important role in deepening mutual understanding between Japan and developing countries, and it has also led to efforts to address global issues, including the economy, the environment and climate change.
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