Japan

U.S.-Japan Economic Harmonization Initiative

Launched in November 2010, the U.S.-Japan Economic Harmonization Initiative (EHI) is a new bilateral Initiative that aims to contribute to our countries’ economic growth by promoting cooperation to harmonize approaches that facilitate trade, address business climate and individual issues, and advance coordination on regional issues of common interest.

Click here for further information on business climate and individual issues, as well as cooperative issues, which the U.S. Government has highlighted for engagement with Japan under this Initiative.

U.S.-Japan Trade Facts

U.S. goods and services trade with Japan totaled $267 billion in 2011 (latest data available for goods and services trade combined). Exports totaled $113 billion; Imports totaled $154 billion. The U.S. goods and services trade deficit with Japan was $40 billion in 2011.

Japan is currently our 4th largest goods trading partner with $195 billion in total (two ways) goods trade during 2011. Goods exports totaled $66 billion; Goods imports totaled $129 billion. The U.S. goods trade deficit with Japan was $63 billion in 2011.

Trade in services with Japan (exports and imports) totaled $72 billion in 2011 (latest data available for services trade). Services exports were $47 billion; Services imports were $25 billion. The U.S. services trade surplus with Japan was $22 billion in 2011.

Exports

Japan was the United States' 4th largest goods export market in 2011.

U.S. goods exports to Japan in 2011 were $66.2 billion, up 9.4% ($5.7 billion) from 2010, and up 1.4% from 2000. U.S. exports to Japan accounted for 4.5% of overall U.S. exports in 2011.

The top export categories (2-digit HS) in 2011 were: Optic and Medical Instruments ($7.7 billion), Machinery ($5.7 billion), Cereals (corn and wheat) ($5.6 billion), Electrical Machinery ($5.0 billion), and Aircraft ($4.8 billion).

U.S. exports of agricultural products to Japan totaled $14.1 billion in 2011, our 4th largest export market. Leading categories include: coarse grains ($3.9 billion), red meats (fresh/chilled/frozen) ($2.8 billion), wheat ($1.4 billion), and soybeans ($954 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Japan were $47.0 billion in 2011 (preliminary data), 5% ($2.3 billion) more than 2010 and 43% greater than 2000 levels. Other private services (business, professional, and technical services and financial services), travel, and the royalties and license fees categories accounted for most of U.S. services exports to Japan.

Imports

Japan was the United States= 4th largest supplier of goods imports in 2011.

U.S. goods imports from Japan totaled $128.8 billion in 2011, a 6.9% increase ($8.3 billion) from 2010, but down 12.1% from 2000. U.S. imports from Japan accounted for 5.8% of overall U.S. imports in 2011.

The five largest import categories in 2011 were: Vehicles ($41.0 billion), Machinery ($31.2 billion), Electrical Machinery ($18.3 billion), Optic and Medical Instruments ($6.9 billion), and Organic Chemicals ($3.0 billion).

U.S. imports of agricultural products from Japan totaled $586 million in 2011. Leading categories include: snack foods (including chocolate) ($54 million), wine and beer ($53 million), and processed fruit and vegetables ($36 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $24.8 billion in 2011 (preliminary data) up 5% ($1.3 billion) from 2010, and up 51% from the 2000 level. The royalties and license fees, the other private services (business, professional, and technical services), and the other transportation (freight services) categories accounted for most of U.S. services imports from Japan.

Trade Balance

The U.S. goods trade deficit with Japan was $62.6 billion in 2011, a 4.3% increase ($2.6 billion) over 2010. The U.S. goods trade deficit with Japan accounted for 8.6% of the overall U.S. goods trade deficit in 2011.

The United States has a services trade surplus of $22.2 billion with Japan in 2011 (preliminary data), up 5% from 2010.

Historical Trade Data

U.S. Goods Trade with Japan (in billions of dollars) 1980, 1985, 1990, 1994, 2000,

2008-2011      

U.S. Services Trade with Japan (in billions of dollars) 1990, 1994, 2000, 2005-2011

Investment

U.S. foreign direct investment (FDI) in Japan (stock) was $113.3 billion in 2010 (latest data available), a 18.0% increase from 2009.

U.S. direct investment in Japan is mostly in the finance/insurance, manufacturing, nonbank holding companies, and wholesale sectors.

Japan FDI in the United States (stock) was $257.3 billion in 2010 (latest data available), up 7.5% from 2009.

Japan direct investment in the U.S. is mostly in the wholesale trade and manufacturing sectors.

Sales of services in Japan by majority U.S.-owned affiliates were $65.6 billion in 2009 (latest data available), while sales of services in the United States by majority Japan-owned firms were $87.1 billion.

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.
4/20/12