Trade between the European Union and Japan adds up to around € 160 billion per year
Expected to increase with Economic Partnership Agreements
EU Japan trade friction was a very long time ago and has been overcome, today trade between Japan and EU is about the same in both direction: about EURO 80 billion in each direction, and EURO 160 billion combined. Still, trade of products and services between Europe and Japan is not trivial at all, and for many products and services a number of thresholds have to be overcome. Probably the greatest threshold is language, but there are also some other thresholds, such as differences in industrial standards, or understanding customers’ needs.
EU Japan trade: Trade in merchandise between EU and Japan
With the expansion of EU businesses in Japan, and increased market entry from EU to Japan, EU goods exports to Japan are rapidly increasing since the end of the Lehmann shock. EU exports to Japan are closing in with Japan’s exports to Europe. Japanese exports to Europe (with strong contributions from cars, electronics and machinery) have been decreasing in recent years.
EU Japan trade: Trade in commercial services between EU and Japan
Commercial services are one of Europe’s strengths, and EU companies export more commercial services to Japan than in the opposite Japan -> EU direction.
EU Japan trade: Combined trade (merchandise plus commercial services) between EU and Japan
Combining the amounts of trade for merchandise and commercial services, EU exports to Japan and Japanese exports to EU have reached equal levels, so that the trade between EU and Japan is now balanced around EURO 80 billion in each direction, i.e. a combined trade of EURO 160 billion.
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