Archive:Japan-EU – international trade in goods statistics

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Data extracted in April 2018. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: April 2019.

This article provides a picture of the international trade in goods between the European Union (EU) and Japan. It analyses the type of goods exchanged between the two economies and the shares of each EU Member State in those exchanges.

Figure 1a: The position of Japan among the world's largest traders, 2016
Source: Eurostat (ext_lt_introle)

Figure 1b: Top 25 exporters and importers in the world, 2016 (EUR billion)
Source: Eurostat (ext_lt_introle)

Figure 2: Evolution of trade of the EU-28 and Japan (2007 = 100) and cover ratio 2007 to 2016
Source: Eurostat (ext_lt_introle)

Figure 3: The position of Japan among the EU's main partners, 2017
Source: Eurostat (ext_lt_maineu)

Figure 4: Imports, exports and trade balance between the EU and Japan, 2008-2017 (EUR billion)
Source: Eurostat (ext_lt_maineu)

Figure 5: EU-28 exports to and imports from Japan by product group, 2008 and 2017 (EUR billion)
Source: Eurostat DS-018995

Figure 6: EU-28 imports, exports and trade balance with Japan by product group, 2008-2017 (EUR billion)
Source: Eurostat DS-018995

Figure 7: Most traded goods with Japan, top 20 of SITC level 3 products, 2017 (EUR billion)
Source: Eurostat DS-018995

Figure 8a: Imports from Japan by Member State, 2017
Source: Eurostat DS-018995

Figure 8b: Exports to Japan by Member State, 2017
Source: Eurostat DS-018995

Figure 8c: Trade balance with Japan by Member State, 2017 (EUR million)
Source: Eurostat DS-018995

Main statistical findings

In 2016, Japan was both the fourth largest exporter and importer of goods in the world with a share of 5 % in both world exports and imports.
Among EU's trading partners, Japan was the sixth largest partner both for EU exports and EU imports, in 2016.
The EU has a trade deficit with Japan since 2007 which was EUR 8.5 billion in 2016.
Manufactured goods dominated both the exports of goods from the EU to Japan and imports from Japan to the EU, accounting for 85 % of the total exports and 94 % of total imports.
Among EU Member States in 2016, Germany (imports EUR 16 billion, exports EUR 19 billion) was the largest EU trade partner of Japan.
Germany also had the largest trade surplus (EUR 3 billion) with Japan, while the Netherlands had the largest trade deficit (EUR 7 billion).

EU and Japan in world trade in goods

Figure 1 shows that the five largest traders account for more than half of the world exports and imports. In both cases Japan was the fourth largest, accounting for one twentieth of all goods exported and imported. In exports it was preceded by China (17 %), the EU (16 %) and the United States (12 %) and followed by Hong Kong (4 %). In imports it was preceded by the USA (18 %) the EU (15 %) and China (12 %) and again followed by Hong Kong (4 %).

Figure 2 focuses on the evolution of trade in the EU and Japan over the period 2007-2016. Between 2007 and 2014 Japan's imports grew more rapidly than its exports and consequently its cover ratio (exports divided by imports), which had been above 100 % until 2011, dropped to 85 % in 2014. However in 2015 and 2016 Japan's imports dropped while its exports continued to grow. As a result Japans cover ratio reached 106 % in 2016. For the EU the cover ratio was below 85 % in 2007 and only rose to 103 % in 2013 due to strong export growth, in 2016 it had dropped slightly to 102 %.

EU deficit strongly reduced between 2007 and 2016

Figure 3 shows that in 2016, Japan had a share of 3.3 % in extra-EU exports (EUR 58 billion) and 3.9 % in extra-EU imports (EUR 67 billion). This meant it was the sixth largest partner for imports and exports with the EU, in both cases ahead of Norway and after Turkey and Russia. The top six was completed by the United States, China and Switzerland.

The EU had a trade deficit with Japan from 2007 to 2016 (see Figure 4). In this period trade between the two economies hit a low in 2009, and only surpassed the 2007 level in 2016. It was lowest in 2013 at EUR 3 billion but rose again to 9 billion in 2016. However the trade deficit is only a quarter of what it was in 2007.

Manufactured goods dominate trade with Japan

When breaking down imports and exports by SITC groups, the main categories driving the exports to and imports from Japan are 'Machinery and vehicles’, 'Chemicals’ and 'Other manufactured goods’. Together these manufactured goods accounted for around 85 % of the EU exports and 95 % of imports (see Figure 5). Compared to 2007 this meant that in exports their share grew by 2 % while in imports it fell by 3 %.

Figure 6 shows the evolution of EU imports and exports by SITC group since 2007. In 'Machinery and vehicles' which is the most traded group, the EU had a trade deficit of EUR 42 billion in 2007 which reduced to EUR 17 billion in 2014 but rose again to 22 billion in 2016. In 2016 the only other group were EU trade was in deficit was 'Other goods' while in 'Chemicals', 'Other manufactured goods', 'Food & drink' and 'Energy' the EU registered trade surpluses of different sizes.

Most traded goods: Motor cars and motor vehicles

Figure 7 gives more details about the goods exchanged between the EU and Japan, showing the top 20 traded goods at a more detailed level (by SITC level 3). Those top 20 goods covered around 56 % of total traded goods in 2016. Thirteen products among the top 20 belong to the 'Machinery and vehicles' group and five to 'Chemicals'. Motor cars and motor vehicles were both the most imported and exported product.

Another interesting way to look at data is to investigate the export/import ratio of traded goods, in order to better identify the direction taken by flows and specialisation between the two areas. These ratios can be found in the right margin of Figure 8. For the top product, motor cars and vehicles, the ratio equals 80 meaning that for every 100 euros of imports from Japan the EU exports 80 euros to Japan. Several other products have ratios between 40 and 300 indicating trade flows in both directions. A ratio of more than 300 is only found in medicaments (1260) while ratios below 30 are found for electrical machinery and apparatus (18), motor cycles (11), engineering and plant equipment (10), office machines (3) and non-monetary gold (1).

Germany is trading most with Japan

Figure 8a shows Member States' imports from Japan and the share of the partner Japan in national extra-EU imports. Table 9b provides similar information but concerning Member States' exports to Japan.

There are six Member States whose imports from Japan in 2016 were higher than EUR 4 billion: the Germany, the United Kingdom, the Netherlands, Belgium, France and Italy. Together they accounted for more than 80 % of imports from Japan. The share of Japan in extra-EU imports was highest for Luxembourg (9 %) and lowest for Lithuania (0.5 %)

The same six Member States were also the largest exporters to Japan although in a different order but again Germany was the largest. They accounted for roughly three quarters of total exports to Japan. The share of Japan in extra-EU exports was highest for Malta (9 %) and almost zero for Cyprus.

Figure 8c shows that 14 Member States had a trade surplus with Japan in 2016, ranging from just EUR 0.1 million for Croatia to EUR 3 060 million for Germany. The other 14 Member States had a trade deficit, starting at EUR 58 million for Bulgaria to EUR 6 556 million for the Netherlands. The United Kingdom (EUR 5 462 million) and Belgium (EUR 4 784 million) were the only other two countries whose deficit was higher than EUR 1 billion.

Data sources and availability

EU data is taken from Eurostat's COMEXT database. COMEXT is the reference database for international trade in goods. It provides access not only to both recent and historical data from the EU Member States but also to statistics of a significant number of third countries. International trade aggregated and detailed statistics disseminated via the Eurostat website are compiled from COMEXT data according to a monthly process.

Data are collected by the competent national authorities of the Member States and compiled according to a harmonised methodology established by EU regulations before transmission to Eurostat. For extra-EU trade, the statistical information is mainly provided by the traders on the basis of customs declarations.

EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. Statistics on extra-EU trade are calculated as the sum of trade of each of the 28 EU Member States with countries outside the EU. In other words, the EU is considered as a single trading entity and trade flows are measured into and out of the area, but not within it.

Data for the other major traders are taken from the Comtrade database of the United Nations. Data availability differs among countries, therefore Figure 1 shows the latest common available year for all the main traders. For the calculation of shares the world trade is defined as the sum of EU trade with non-EU countries (source: Eurostat) plus the international trade of non-EU countries (source: IMF Dots database).

Methodology

According to the EU concepts and definitions, extra-EU trade statistics (trade between EU Member States and non-EU countries) do not record exchanges involving goods in transit, placed in a customs warehouse or given temporary admission (for trade fairs, temporary exhibitions, tests, etc.). This is known as 'special trade’. The partner is the country of final destination of the goods for exports and the country of origin for imports.

Product classification

Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). A full description is available from Eurostat’s classification server RAMON.

Unit of measure

Trade values are expressed in millions or billions (10⁹) of euros. They correspond to the statistical value, i.e. to the amount which would be invoiced in case of sale or purchase at the national border of the reporting country. It is called a FOB value (free on board) for exports and a CIF value (cost, insurance, freight) for imports.

Context

Trade is an important indicator of Europe’s prosperity and place in the world. The block is deeply integrated into global markets both for the products it sources and the exports it sells. The EU trade policy is an important element of the external dimension of the 'Europe 2020 strategy for smart, sustainable and inclusive growth’ and is one of the main pillars of the EU’s relations with the rest of the world.

Because the 28 EU Member States share a single market and a single external border, they also have a single trade policy. EU Member States speak and negotiate collectively, both in the World Trade Organization, where the rules of international trade are agreed and enforced, and with individual trading partners. This common policy enables them to speak with one voice in trade negotiations, maximising their impact in such negotiations. This is even more important in a globalised world in which economies tend to cluster together in regional groups.

The openness of the EU’s trade regime has meant that the EU is the biggest player on the global trading scene and remains a good region to do business with. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods around the world which gives European companies of every size the potential to trade outside Europe.

Further Eurostat information

Data visualisation

Main tables

International trade in goods (t_ext_go), see:

International trade in goods - long-term indicators (t_ext_go_lti)

International trade in goods - short-term indicators (t_ext_go_sti)

Database

International trade in goods (ext_go), see:

International trade in goods - aggregated data (ext_go_agg)

International trade in goods - long-term indicators (ext_go_lti)

International trade in goods - short-term indicators (ext_go_sti)

International trade in goods - detailed data (detail)

Full access to detailed statistics on international trade in goods (Comext), see:

EU trade since 1988 by SITC (DS-018995)

External links

European Commission