EU-28 trade in goods deficit with Japan decreased to €1.9bn in first half of 2013

Over the past decade, EU-28 international trade in goods with Japan has been characterized by a regular fall in the share of Japan in the EU-28's total trade in goods, more significant for imports than for exports, and a continuous deficit. The share of exports to Japan in the EU-28 total fell from 4.9% in 2002 to 3.3% in 2012 and the share of imports from Japan also dropped, from 7.9% to 3.6%. As a result, the EU-28 trade deficit with Japan decreased from €30.3 billion in 2002 to €9.0bn in 2012.

In the first six months of 2013, EU-28 exports to Japan fell slightly compared with the same period of 2012 from €27.0bn to €26.3 bn, while imports decreased more strongly, from €33.8bn to €28.2bn. Consequently, the EU-28 trade deficit with Japan continued to drop, from 6.8 bn in the first half of 2012 to 1.9 bn in the same period of 2013. Japan was the EU-28's 7th most important trading partner, accounting for around 3.2% of EU-28 trade in goods.

On the occasion of the 21th European Union - Japan summit, which will take place on 19 November 2013 in Tokyo in Japan, Eurostat, the statistical office of the European Union, issues data on trade and investments between the EU and Japan.

Germany: Main EU trading partner of Japan

Among the EU-28 member states, Germany (€8.0bn or 31% of EU exports) was by far the largest exporter to Japan in the first six months of 2013, followed by France (€3.4bn or 13%), Italy (€3.0bn or 11%) and the United Kingdom (€2.6bn or 10%). Germany (€7.3bn or 26% of EU imports) was also the largest importer, followed by the Netherlands2 (5.1 bn or 18%) and the United Kingdom (€4.2bn or 15%). The largest trade deficits with Japan in the first half of 2013 were recorded by the Netherlands (€-3.5 bn) and the United Kingdom (€-1.6 bn), and the largest surpluses by Italy (€+1.6 bn) and France (€+1.0 bn).

EU-28 international trade in goods with Japan in billion euro

EU-28 Member States’ international trade in goods with Japan in million euro

0 = less than 0.5 million

EU-28 international trade in goods with Japan by product million euro

EU-27 surplus in trade in services with Japan almost doubled between 2010 and 2012

In 2012, the EU-27 exported €24.2bn of services to Japan, while imports from Japan amounted to €15.6 bn, meaning that the EU-27 had a surplus of €8.6bn in trade in services with Japan, compared with a surplus of €5.9bn in 2011 and €4.6bn in 2010. The surplus in 2012 was mainly due to computer & information services (€+2.6 bn), financial services (€+2.1 bn) and travel (€+1.5 bn). Japan accounted for just over 3% of total extra EU-27 trade in services.

EU-27 international trade in services with Japan

million euro

Significant volatility in direct investments flows between the EU-27 and Japan

Foreign Direct Investment (FDI) flows between the EU-27 and Japan show large variations. In 2012, the EU-27 invested €0.4bn in Japan, down from 3.1 bn in 2011. Japanese investment in the EU-27 also fell in 2012, to €3.4bn compared with €10.4 bn in 2011.

EU-27 FDI flows with Japan in million euro

1. Up to 30 June 2013, the European Union (EU-27) included 27 member states. From 1 July 2013 the European Union (EU-28) also includes Croatia. Data for international trade in goods are available for all 28 member states, while data for international trade in services and foreign direct investment are only available for 27 member states.
2. Dutch imports, and therefore the trade deficit, are over-estimated because of the 'Rotterdam effect', where goods destined for the rest of the EU arrive and are recorded in harmonised EU external trade statistics in Dutch ports. This then has a positive effect on the external trade balances with Japan of those member states to which the goods are re-exported, as these shipments would be recorded as intra-EU trade with the Netherlands, rather than extra-EU trade with Japan. To a lesser extent, Belgian trade figures are similarly over-estimated.
3. Machinery and vehicles includes power generating and industrial machinery, computers, electric and electronic parts and equipment, road vehicles and parts, ships, airplanes and railway equipment.

Other manufactured articles include leather, rubber, wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.

2. Other business services comprise merchanting and other trade-related services, operational leasing services and miscellaneous business, professional and technical services.

EU-28 trade in goods deficit with Japan decreased to €1.9bn in first half of 2013

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