The U.S. Commercial Service provides guidance on doing business in Japan and offers valuable assistance to help U.S. businesses exporting to Japan.
Why doing business in Japan? -- Japan is the United States' fourth largest export market, after Canada, Mexico and China, and the second largest foreign investor in the United States, with more than $200 billion invested, second only to the United Kingdom. Japan is also the world's second largest economy, with a GDP of roughly $5 trillion in 2008.
The United States-Japan alliance is a cornerstone of U.S. security interests in Asia and is fundamental to regional stability and prosperity. Despite the changes in the post-Cold War strategic landscape, the United States-Japan alliance continues to be based on shared vital interests and values. These include stability in the Asia-Pacific region, the preservation and promotion of political and economic freedoms, support for human rights and democratic institutions, and securing of prosperity for the people of both countries and the international community as a whole. Japan is one of the world’s most prosperous and stable democracies.
Japan enjoyed a long period of sustained, albeit shallow,
economic growth from February 2002 until October 2007.
However, Japan entered recession in 2008.
Major firms in key export industries like automobiles and
electronics began to decrease production and terminate contracts
for temporary workers. Domestic spending also began to fall and
the situation is generally predicted to worsen in 2009 if the
global recession continues and domestic unemployment increases.
Japan remains a promising market for U.S. exporters, however,
with a market scale ranking near the top of developed nations.
Partnerships with Japanese companies enable U.S. companies to
leverage their respective strengths, which is vital to remaining
globally competitive. Japanese companies emphasize enhancing
product development and manufacturing efficiency, making Japan an
ideal venue for innovation. Japanese companies continue to expand
their market reach throughout East Asia and their established
networks provide U.S. business partners with smooth access to
these important markets.
In 2008, according to U.S. Census Bureau data, the United States
had a year- to-date trade deficit with Japan of $72.7 billion, a
decrease of 12.2 percent from 2007. U.S. exports to Japan
totaled $66.6 billion, while U.S. imports from Japan totaled
$139.2 billion.
In 2007, according to U.S. Department of Commerce data, the United States exported $41.1 billion worth of services to Japan, generating a surplus of approximately $15 billion. Figures for the first three quarters of 2008 show U.S. exports of services to Japan increased by 10.7 percent on a year on year basis while service imports from Japan increased by 8.5 percent.
In 2008, Japanese trade data indicate Japan’s total exports by value decreased 3.4 percent and imports increased by 7.9 percent, with an 80 percent decrease in Japan’s global trade surplus. The top ten exporters to Japan in 2008 were China, the United States, Saudi Arabia, Australia, United Arab Emirates, Indonesia, South Korea, Malaysia, Taiwan, and Germany. The top ten importers from Japan were the United States, China, South Korea, Taiwan, Hong Kong, Thailand, Singapore, Germany, the Netherlands, and Russia.