Japan: Trade profile

Foreign Trade in Figures

Foreign trade is an essential element of the Japanese economy, but the country is not fully open and imposes extensive non-tariff barriers, especially in the agricultural sector. Japan is the world's 5th-largest exporter and importer of goods (WTO), and foreign trade accounts for 47% of its GDP (World Bank, latest data available). The country mainly exports motor vehicles (11.6% of all exports) being the third exporter of cars worldwide, electronic integrated circuits (4.5%), semiconductors and related items (4.1%), parts and accessories for motor vehicles (3.9%), and petroleum oils (2%). The country's main imports include petroleum oils (11.2%) and gases (8%), coal (6.6%), electronic integrated circuits (3.6%), and telephones (3.2% - data Comtrade for 2022).

Japan’s main export partners in 2022 were China (19.4%), the United States (18.7%), South Korea (7.2%), Hong Kong (4.4%), and Thailand (4.3%); whereas imports came chiefly from China (21%), the U.S. (10.1%), Australia (9.8%), the UAE (5.1%) and Saudi Arabia (4.7%). Japan is the EU’s second-biggest trading partner in Asia after China, and together they both account for about a quarter of the world's GDP. The two parties signed an Economic Partnership Agreement, which entered into force in 2019. Moreover, Japan signed the Regional Comprehensive Economic Partnership (RCEP), arguably the largest free trade agreement in history (its signatories include China, Australia, South Korea, etc., cumulating about 30% of global GDP). The RCEP agreement entered into force on 1 January 2022.

The country traditionally has a large trade surplus; however, in recent years the balance turned null and it was negative by 3.8% of GDP in 2022 (World Bank). According to WTO data, Japan's exports of goods reached USD 746.9 billion (-1.2% year-on-year) in 2022, while imports amounted to USD 897.2 billion (+16.6 y-o-y). Concerning the service sector, exports decreased 1.9% year-on-year to USD 166.7 billion, whereas imports were stable at USD 209.5 billion. According to the Ministry of Trade, exports totalled JPY 100.8 billion in 2023 (+2.8%), whereas imports reached JPY 110.1 billion, marking a 7% decrease year-on-year.

Main Partner Countries

Source: UN Comtrade Database, Latest data available.

Main Products

Source: UN Comtrade Database, Latest data available.

To go further, check out our service Search import and export data.

Main Services

Source: United Nations Statistics Division, Latest data available.

Monetary Indicators	2016	2017	2018	2019	2020
Japanese Yen (JPY) - Average Annual Exchange Rate For 1 GBP	146.89	144.36	147.32	136.25	136.89

Source: World Bank, Latest data available.

Find out all the exchange rates daily on our service Currency converter.

Trade Compliance

International Conventions

Member of the World Trade Organization (WTO)
Member of the Organisation for Economic Co-operation and Development (OECD)
Party to the Kyoto Protocol
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer
Party to the Wassenaar Arrangement on Export Controls For Conventional Arms and Dual-Use Goods and Technologies
Party to the International Coffee Agreement

International Economic Cooperation

Japan is a member of the following international economic organisations: Asia-Pacific Economic Cooperation (APEC), Association of Southeast Asian Nations (dialogue partner of ASEAN Plus Three), G-5, G-7, G-8, G-10, G-20, IMF, OECD, among others. For the full list of economic and other international organisations in which participates Japan click here. International organisation membership of Japan is also outlined here.

Free Trade Agreements

Japan is a member of Regional Comprehensive Economic Partnership (RCEP) signed on 15 November 2020. The complete and up-to-date list of Free Trade Agreements signed by Japan can be consulted here.

Party of the ATA Convention on Temporary Admissions and Use of the Carnets

Yes

As a Reminder, the ATA is a System Allowing the Free Movement of Goods Across Frontiers and Their Temporary Admission Into a Customs Territory With Relief From Duties and Taxes. The Goods Are Covered By a Single Document Known as the ATA Carnet That is Secured By an International Guarantee System.

Party of the TIR Convention

No

As a Reminder, the TIR Convention and its Transit Regime Contribute to the Facilitation of International Transport, Especially International Road Transport, Not Only in Europe and the Middle East, But Also in Other Parts of the World, Such as Africa and Latin America.

Accompanying Documents For Imports

 The following documents should be presented at the Japanese customs:
- Air Waybill or Bill of Lading;
- Commercial Invoice for import shipments with a value exceeding 10,000 yen and for any commodity being imported;
- Certificate of Origin- Import Approval;
- Quarantine Forms.

To go further, check out our service Shipping documents.

Free-trade zones

Japan no longer has free-trade zones or free ports. Customs authorities allow the bonding of warehousing and processing facilities adjacent to ports on a case-by-case basis.

For Further Information

Japanese Customs Office
Japanese Ministry of Foreign Affairs
Japanese Ministry of Economic, Trade and Industry

Non Tariff Barriers

Non-tariff barriers are common in Japan. Factors such as exclusively Japanese standards, the importance of personal relations in doing business and a regulatory policy with a preference for national products may inhibit entrance of foreign products into the Japanese market. Quotas exist for certain marine products, organic chemical products, explosives, pharmaceutical and medical products, animals and plants (in respect of the Washington Convention). An import license is necessary for all products subject to quotas, products deemed dangerous and perishable goods. See the list of goods prohibited from importation into Japan.

Sectors or Products For Which Commercial Disagreements Have Been Registered With the WTO

Processed foodstuffs: pork, apples, alcoholic drinks, agricultural products.

Data processing equipment, cars, steel, telecommunications, leather, etc.

The WTO gives details of these disagreements on the page of information concerning the country.

Assessment of Commercial Policy

Japan’s commercial policy, as seen by the WTO
Barriers to exchanges, inventoried by the United States
Barriers to exchanges, inventoried by the EU
Sanitary and phytosanitary barriers, inventoried by the EU

Standards

National Standards Organisations

The Japanese Industrial Standards Committee (JISC)

Integration in the International Standards Network

The JISC is a member of:
- The International Standard Organisation (ISO)
- The International Electrotechnical Commission (IEC)
- The APEC/SCSC, Sub Committee of Standards and Conformance of the Asia Pacific Economic Cooperation
- The ASEM/TFAP/SCA, Trade Facilitation Action Plan/Standards and Conformity Assessment of the Asia-European Meeting
- The Pacific Area Standards Congress

Obligation to Use Standards

The standards proposed by the JAS are exclusively voluntary. They concern 600 different industrial products and more than 8500 standards.
 There are two ongoing trends in Japan regarding standards. One is a move toward standards reform and the other towards harmonizing Japanese standards with prevailing international standards. While reform is underway, there are numerous laws containing Japan-specific mandatory standards. Therefore it is sometimes difficult to master all the requirements.

Classification of Standards

JIS + 1 letter showing the technical area + 4-digit number showing the rank in the JIS division.

Assessment of the System of Standardization

Product requirements in Japan fall into two categories: technical regulations (or mandatory standards) and non-mandatory voluntary standards. Respect of voluntary standardization is highly regarded in Japan; it can increase sales potential on the market and the acceptance of the product by consumers. Approval is generally required before a product can be sold in the market or even displayed at a trade show.

Online Consultation of Standards

The publication of standards is entrusted to the JSA (Japanese Standards Association) which is the publishing house of the JISC. The website of the JSA gives access to JISC standards.

Certification Organisations

List of Designated Certification Bodies by the Japanese Industrial Standards Committee (JISC)
Japan Accreditation Board (JAB)
National Institute of Technology and Evaluation

Associations of Standards Users

Member of JISC (Japanese Industrial Standards Committee)

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