Japan's Exports Lag US Imports in 2008

US Demand for Japanese Automobiles Started Downward Trend Last Year

Mar 25, 2009 Daniel Workman

Military aircraft, wheat, dairy products & eggs are among fast-growing US shipments to Japan, whose economy may be overly specialized in automotibles & electronics.

Japan's exports to the U.S. slumped 58.4% in February 2009 from a year earlier. This decline was due principally to sharply falling American demand for Japanese cars and automotive parts.

To understand the competitive advantages and weaknesses of the Japanese-American trading relationship, this analysis focuses on the major imports and exports in 2008 between two of the world's largest economies.

With a crowded population of 127.1 million, Japan`s annual exports to America fell by a modest 4.3% to US$139.2 billion in 2008. That amount represents a 7.3% gain since 2004.

Japan’s imports from America rose 6.2% to $66.6 billion in 2008, a 22.7% increase from the 2004 amount.

Overall, the U.S. experienced a $72.7-billion deficit in its trade with Japan last year. America’s shortfall in 2008 represents a 12.2% improvement in its $82.8-billion trade deficit with Japan in 2007. Further, the U.S. deficit with Japan is 3.8% less than the $75.6-billion deficit in 2004.

Japan’s Top Exports to America

The top 10 commodities that the U.S. imports from Japan are heavily weighted in automotive and electronic products.

1. Passenger cars … US$41.5 billion, down 5.1% from 2007 (29.8% of US-source imports)
2. Other automotive parts & accessories … $8.9 billion, down 11.3% (6.4%)
3. Computer accessories … $6.7 billion, up 21.4% (4.8%)
4. Other industrial machinery … $6.4 billion, down 3.6% (4.6%)
5. Electric apparatus & parts … $3.9 billion, down 0.3% (2.8%)
6. Engines & engine parts … $3.6 billion, down 6.1% (2.6%)
7. Semi-conductors … $3.5 billion, down 1.7% (2.5%)
8. Machine & metal working tools … $3.3 billion, up 10.4% (2.4%)
9. Telecommunications equipment … $2.7 billion, down 3.3% (1.9%)
10. Other hospital, medical & scientific equipment … $2.5 billion, up 2.8% (1.8%).

Fastest-Growing Japanese Exports to America

Among Japan`s leading growth exports into the U.S. valued at more than US$100 million, most showed low double-digit gains last year. This suggests a large and mature trade relationship.

1. Coal … US$200.9 million, up 57.4% from 2007
2. Drilling & oilfield equipment … $618.6 million, up 48.2%
3. Books & magazines … $161.1 million, up 35.2%
4. Generators & transformers … $2.5 billion, up 23.9%
5. Semi-finished iron & steel mill products … $979.4 million, up 23.6%
6. Computer accessories … $6.7 billion, up 21.4%
7. Soft beverages & processed coffee … $192 million, up 18.3%
8. Antiques, artwork & stamps … $136.4 million, up 18%
9. Fish & shellfish … $246.1 million, up 16.1%
10. Materials handling equipment … $1.4 billion, up 15%.

Japan’s Top Imports from the U.S.

Below are the top ten goods imported from America into Japan for 2008. Corn, meat and poultry are major U.S. food exports into the Land of the Rising Sun.

1. Corn … US$3.9 billion, up 47.3% from 2007 (5.8% of US-source imports)
2. Civilian aircraft … $3.5 billion, down 15.2% (5.3%)
3. Medicinal equipment … $2.8 billion, up 11.4% (4.3%)
4. Other industrial machines … $2.4 billion, down 16.7% (3.6%)
5. Meat & poultry … $2.1 billion, up 36.9% (3.1%)
6. Pharmaceutical preparations … $1.9 billion, up 12.8% (2.8%)
7. Telecommunications equipment … $1.8 billion, down 11% (2.7%)
8. Organic chemicals … $1.74 billion, up 4.3% (2.6%)
9. Other household goods … $1.69 billion, up 17% (2.5%)
10. Semi-conductors … $1.6 billion, down 6.4% (2.4%).

Fastest-Growing Japanese Imports from the U.S.

The following are 10 of the fastest-growing U.S. exports into Japan last year. Only goods valued at $100 million or more were selected for this list.

1. Complete military aircraft ... US$400.6 million, up 557% from 2007
2. Natural gas … $321.7 million, up 191.1%
3. Chemical fertilizers … $611.3 million, up 161.9%
4. Glass, plastic & wood … $318.7 million, up 140.6%
5. Wheat … $1.6 billion, up 104.1%
6. Other petroleum products … $973.3 million, up 68.3%
7. Coal … 184.8 million, up 64.9%
8. Dairy products & eggs … $202.8 million, up 54.3%
9. Copper … $423.6 million, up 48.8%
10. Truck, buses & special purpose vehicles … $105.8 million, up 48.2%.

US Imports More Diversified than Japanese Exports

American imports into Japan represent a wide variety of products, from military and civilian aircraft to corn and wheat. None of the American product categories generate more than 5.8% of total US shipments. In contrast, Japanese automotive and computer exports to America account for well over 41% of its overall shipments to America.

Because the US ships a wider variety of products to Japan, the risk of a persistent downturn in demand for any one category of American-made products is somewhat mitigated. This is particularly true for USA food shipments to the large and hungry Japanese population.

Sources

This analysis is based on latest statistics from the US Census Bureau - Foreign Trade Statistics as of the date of article publication.

The copyright of the article Japan's Exports Lag US Imports in 2008 in International Trade is owned by Daniel Workman. Permission to republish Japan's Exports Lag US Imports in 2008 in print or online must be granted by the author in writing.

Dairy & Eggs Are Major US Exports to Japan