Archive:Japan-EU – international trade in goods statistics
Data extracted in April 2018
Planned article update: April 2019
Highlights
People who have a tertiary education and work in a science and technology occupation, 2016
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.
Full article
Overview
- 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.
- In 2017, Japan was the sixth largest partner for EU exports and the seventh largest partner for EU imports.
- The EU has had a trade deficit with Japan since 2008, which registered EUR 8.1 billion in 2017.
- Manufactured goods dominated both exports of goods from the EU to Japan and imports from Japan to the EU, accounting for 84 % of the total exports and 95 % of total imports.
- Among the EU Member States, Germany is the largest importer from Japan (EUR 16 billion) and the largest exporter to Japan (EUR 20 billion) in 2017.
- Germany also had the largest trade surplus (EUR 4 billion) with Japan in 2017, while the Netherlands had the largest trade deficit (EUR 6 billion).
EU and Japan in world trade in goods
In 2016, the five largest traders account for more than half of the world exports and imports (Figure 1). In both cases, Japan was the fourth largest, accounting for 5 % 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 United States (18 %) the EU (15 %) and China (12 %) and again followed by Hong Kong (4 %).
Source: Eurostat (ext_lt_introle)
Source: Eurostat (ext_lt_introle)
The evolution of trade in the EU and Japan over the period 2007-2016 is the focus of Figure 2. 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 Japan's cover ratio reached 106 % in 2016. For the EU, the cover ratio was 85 % in 2007 but rose to 103 % in 2013 due to strong export growth, although in 2016 it had dropped slightly to 102 %.
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Source: Eurostat (ext_lt_introle)
EU deficit strongly reduced between 2008 and 2017
Japan's trade compared to the top four trading partners of the EU, which were the United States, China, Switzerland and Russia, is shown in Figure 3a. These four made up 43 % of all exports from the EU and 48 % of all imports to the EU. Figure 3b has some more detail, showing Japan is the sixth largest export partner (EUR 60 billion) and the seventh largest import partner (EUR 69 billion). Besides the top four mentioned above, it is preceded in exports by Turkey (EUR 85 billion) and followed by Norway (EUR 51 billion. In imports, Norway (EUR 77 billion) and Turkey (EUR 70 billion) both come before Japan.
The EU had a trade deficit with Japan from 2008 to 2017 (see Figure 4). In this period trade between the two economies hit a low in 2009. Exports quickly recovered but imports had not yet surpassed the 2008 level in 2017. Consequently the trade deficit of EUR 34 billion in 2008 dropped to EUR 3 billion in 2013. It rose to 8 billion in 2017, which was less than a quarter of its 2008 level.
Source: Eurostat (ext_lt_maineu)
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 84 % of the EU exports and 95 % of imports (see Figure 5). Compared to 2008 this meant that in exports their share grew by 3 % while in imports it fell by 1 %.
Source: Eurostat DS-018995
The evolution of EU imports and exports by SITC group since 2008 is shown in Figure 6. In 'Machinery and vehicles' which is the most traded group, the EU had a trade deficit of EUR 39 billion in 2008 which reduced to EUR 17 billion in 2014 but rose again to 23 billion in 2017. In 2017 the only other groups where EU trade was in deficit were 'Other goods' and 'Energy' while in 'Chemicals', 'Other manufactured goods', 'Food & drink' and 'Raw materials' the EU registered trade surpluses of different sizes.
Source: Eurostat DS-018995
Most traded goods: Motor cars and motor vehicles
More details about the goods exchanged between the EU and Japan are presented in Figure 7, 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 2017. Thirteen products among the top 20 belong to the 'Machinery and vehicles' group and four 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 7. For the top product, motor cars and vehicles, the ratio equals 86 meaning that for every 100 euros of imports from Japan the EU exports 86 euros to Japan. Several other products have ratios between 40 and 250, indicating trade flows in both directions. A ratio of more than 250 is only found in medicaments and medicinal and pharmaceutical products, while ratios below 40 are found in office machines, non-monetary gold, engineering and plant equipment, motor cycles, electronic tubes and valves, electrical machinery and motor vehicle parts
Source: Eurostat DS-018995
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 in 2017. Table 8b provides similar information but concerning Member States' exports to Japan.
There are six Member States whose imports from Japan were higher than EUR 4 billion: Germany (EUR 16.0 billion), the United Kingdom (EUR 11.4 billion), the Netherlands (EUR 9.9 billion), Belgium (EUR 8.5 billion), France (EUR 5.5 billion) and Italy (EUR 4.2 billion). Together they accounted for 81 % of imports from Japan. The share of Japan in extra-EU imports was highest for Luxembourg (15.2 %) and lowest for Lithuania (0.4 %)
The six largest importing Member States were also the largest exporters to Japan although in a different order. Again Germany (EUR 19.9 billion) was the largest but now followed by Italy (EUR 6.6 billion), the United Kingdom (EUR 6.5 billion), France (EUR 6.4 billion), the Netherlands (EUR 3.6 billion) and Belgium (EUR 3.3 billion). Combined they accounted for roughly three quarters of total exports to Japan. The share of Japan in extra-EU exports was highest for Malta (10.4 %) and almost zero for Cyprus.
In 2017, half of the Member States had a trade surplus with Japan (Figure 8c), ranging from just EUR 24 million for Croatia to EUR 3.9 billion for Germany. Italy (EUR 2.4 billion), Ireland (EUR 1.6 billion), Denmark (EUR 1.5 billion) and Finland (EUR 1.1 billion) were the only other countries where the trade surplus was more than EUR 1 billion. Fourteen Member States had a trade deficit, starting at EUR 27 million for Greece to EUR 6.3 billion for the Netherlands. Belgium (EUR 5.2 billion) and the United Kingdom (EUR 4.9 billion) were the only other two countries whose deficit was higher than EUR 1 billion.
Source data for tables and graphs
Data sources
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 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 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 bloc 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.
Direct access to
Other articles
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)
- EU trade since 1988 by SITC (DS-018995)
Dedicated section
Data visualisation
Methodology / Metadata
- International trade in goods statistics - background
- International trade in goods (ESMS metadata file — ext_go_agg_esms)
- User guide on European statistics on international trade in goods