Fast Facts about California-Japan Trade Relations Compiled by: Assembly Committee on Jobs, Economic Development, and the Economy Juan Arambula, Chair



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Fast Facts about California-Japan Trade Relations

Compiled by: Assembly Committee on Jobs, Economic Development, and the Economy

Juan Arambula, Chair
Japan is the third largest economy in the world with a gross domestic product (GDP) of $4.29 trillion.1 It is also the third largest market for exports of California-made goods.2 In 2007, $13.5 billion in goods were exported from California to Japan.3
California's Trade Economy

  • California’s gross state product is $1.8 trillion, making it one of the world’s largest economies in 20074.

  • Exports from California accounted for 12% of total U.S. exports in 2007.5

  • California's export shipments of merchandise in 2007 totaled $134.3 billion, ranking California second only to Texas ($168.2 billion) among the states in terms of total exports of products in 2007.6 However, if the value of services were added to the export of profit, it is likely that California would rank first in total exports.7

  • California leads the nation in export-supported jobs - one in seven jobs is related to trade.8

  • Small and medium-sized firms generated more than two-fifths (44%) of California's total exports of merchandise in 2006.9

  • California exported to 222 foreign destinations in 2007.10

  • California's largest export markets in 2007 were its NAFTA trading partners Mexico ($18.3 billion) and Canada ($16.3 billion), followed by Japan ($13.5 billion).11

  • In 2007, the state's leading export category was computers and electronic products, representing 33% ($43.7 billion) of California's total merchandise exports. 12


Profile of Japan

  • Japan's estimated July 2008 population is 127 million,13 while California's population is 38 million.14

  • Geographically, Japan is slightly smaller than California, but it also has more than three times the population of California.15

  • Japan's GDP in 2007 was $4.29 trillion based on purchasing power parity. 16 By comparison, in 2007, the U.S.'s GDP was $13.84 trillion17 and California's total gross state product was $1.8 trillion.18


Japan's Economy

  • Japan advanced their economy with extraordinary rapidity from the 1960s to the 1980s by focusing on industry corporation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP).19

  • In the past, one notable characteristic of the Japanese economy was that manufacturers, suppliers, and distributors worked together in close-knit groups called "Keiretsu." Also, the corporations used to guarantee lifetime employment for a substantial portion of the urban labor force. These features have now eroded.20

  • Japan's industrial sector is heavily dependent on imported fuels and raw materials21 such as wood, ore and concentrates of non-ferrous base metals, iron ore and concentrates, and soybeans. 22

  • Japan's major export commodities in 2006 were transportation equipment, motor vehicles, semiconductors, electrical machinery, and chemicals.23

  • Japan's major import commodities in 2006 were machinery and equipment, fuels, foodstuffs, chemicals, textiles, and raw materials.24

  • The small agricultural sector (an estimated 1.4% of Japan's GDP in 2007) is highly subsidized and protected by the government.25

  • Japan's major export partners in 2006 were the U.S. 22.8%, China 14.3%, South Korea 7.8%, Taiwan 6.8%, and Hong Kong 5.6%.26

  • Japan's major import partners in 2006 were China 20.5%, U.S. 12%, Saudi Arabia 6.4%, UAE 5.5%, Australia 4.8%, South Korea 4.7%, and Indonesia 4.2%.27


Academics in Japan

  • Japan had 87 national, 89 local, and 568 private universities in 2006.28

  • Japan's top three colleges are University of Tokyo, Kyoto University, and Osaka University.29

  • There were 2,859,212 college students in Japan in 2006.30

  • In 2006, 603,054 people entered universities31 and 558,184 people graduated from universities with a bachelor's degree.32

  • According to the 2007 World University Rankings by Times Higher Education, the University of Tokyo is ranked number 9 of the top 50 universities for Technology,33 number 12 for Natural Science,34 and number 13 for Life Sciences and Biomedicine.35 Kyoto University is ranked number 17 for Natural Science,36 number 27 for Life Sciences and Biomedicine,37 and number 29 for Technology.38 Osaka University is ranked number 39 for Life Sciences and Biomedicine.39


Japan Exports to the U.S.

Japan's major exports to California are substantially similar to the exports from Japan to the U.S. as a whole.40 Japan primarily exports the following products to the U.S.:



  • Vehicles, other than rail way or tramway rolling stock, and parts and accessories thereof41

  • Nuclear reactors, boilers, machinery and mechanical appliances, parts thereof42

  • Electrical machinery and equipment and parts thereof, sound recorders and reproducers, television recorders and reproducers, parts and accessories43


Japan and U.S. Trade Relations

  • The U.S. is Japan's top export market representing 22.8% of all exports in 2006.44

  • The U.S. is Japan's second largest import market representing 12% of all imports in 2006.45

  • Japan is the U.S.' fourth largest trading partner, representing 5.4% of all exports in 2007.46

  • In 2007, the U.S. trade deficit with Japan was $82.8 billion, accounting for 10.5% of the U.S.' overall trade deficit. However, the U.S. trade deficit with Japan is decreasing year by year.47


California Exports to Japan in 2007

  • Japan is California's third largest export partner.48

  • California exported $13.5 billion worth of goods to Japan, accounting for approximately 10% of California's overall goods exports.49

  • California's top exports to Japan are computers and electronic products with 26.5% of total exports.50

  • California's second largest exports to Japan at $1.9 billion (14.2%) are machinery manufactures.51

  • Japan is the third major California agricultural export destination. California's main exports to Japan are rice, almonds, hay, oranges (fresh and juiced), and wine.52

2007 Exports from California to Japan by Industry Sector




Product

Value ($)

Percent



334 _Computers & Electronic Prod.

3,565,350,203

26.5 %



333 _Machinery Manufactures

1,909,820,942

14.2 %



336 _Transportation Equipment

1,806,157,813

13.4 %



311 _Processed Foods

1,106,569,853

8.2 %



All Others

5,064,271,173

37.6 %




 Grand Total

13,452,169,984

100 %

Source: TradeStats Express




1 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html; accessed 7/15/08

2 https://www.calchamber.com/CC/BusinessResources/InternationalResources/AllAboutInternationalTrade/TradeStatistics.htm; accessed7/16/08

3 http://tse.export.gov/SEDChartDisplay.aspx?UniqueURL=0oyjqob5vyklp03f2g1ghgbo-2008-7-17-19-8-57; accessed 7/15/08

4 Bureau of Economic Analysis, Gross State Product, www.bea.gov/bea/regional/gsp/ ; accessed 7/17/08

5 http://www.calchamber.com/CC/BusinessResources/InternationalResources/AllAboutInternationalTrade/TradeStatistics.htm; accessed 7/16/08

6 http://www.ita.doc.gov/td/industry/otea/state_reports/california.html; accessed 7/17/08

7 California Business, Transportation & Housing Agency; Toward a California Trade and Investment Strategy: Potential Roles for the State in Global Market Development, October 1, 2007; Page 8

8 http://www.calchamber.com/CC/BusinessResources/InternationalResources/AllAboutInternationalTrade/TradeStatistics.htm; accessed 7/16/08

9 http://www.ita.doc.gov/td/industry/otea/state_reports/california.html; accessed 7/17/08

10 http://www.ita.doc.gov/td/industry/otea/state_reports/california.html; accessed 7/17/08

11 http://www.ita.doc.gov/td/industry/otea/state_reports/california.html; accessed 7/17/08

12 http://www.ita.doc.gov/td/industry/otea/state_reports/california.html; accessed 7/17/08

13 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html; accessed 7/15/08

14 http://www.dof.ca.gov/research/demographic/reports/estimates/e-4_2001-07/documents/E-4_2008%20Internet%20Version.xls.; accessed 7/16/07

15 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html; accessed 7/15/08

16 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html; accessed 7/15/08

17 https://www.cia.gov/library/publications/the-world-factbook/geos/us.html; accessed 7/21/08

18 Bureau of Economic Analysis, Gross State Product, www.bea.gov/bea/regional/gsp/; accessed 7/17/08

19 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

20 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

21 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

22 http://www.stat.go.jp/data/nenkan/zuhyou/y1506000.xls; accessed 7/22/08

23 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

24 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

25 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

26 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

27 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html accessed 7/17/08

28 http://www.mext.go.jp/b_menu/toukei/002/002b/19/081.pdf; accessed 7/22/08

29 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=146; accessed 7/23/08

30 http://www.mext.go.jp/b_menu/toukei/002/002b/19/082.pdf; accessed 7/22/08

31 http://www.mext.go.jp/b_menu/toukei/002/002b/19/097.pdf; accessed 7/22/08

32 http://www.mext.go.jp/b_menu/toukei/002/002b/19/102.pdf; accessed 7/22/08

33 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=149; accessed 7/23/08

34 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=146; accessed 7/23/08

35 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=147; accessed 7/23/08

36 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=146; accessed 7/23/08

37 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=147; accessed 7/23/08

38 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=149; accessed 7/23/08

39 http://www.timeshighereducation.co.uk/hybrid.asp?typeCode=147; accessed 7/23/08

40 Ishihara, Tetsu; Japan External trade Organization called 7/24/08

41 http://dataweb.usitc.gov/scripts/REPORT.asp; accessed 7/23/08

42 http://dataweb.usitc.gov/scripts/REPORT.asp; accessed 7/23/08

43 http://dataweb.usitc.gov/scripts/REPORT.asp; accessed 7/23/08

44 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html; accessed 7/17/08

45 https://www.cia.gov/library/publications/the-world-factbook/print/ja.html; accessed 7/17/08

46 http://www.mofa.go.jp/mofaj/area/usa/keizai/j_us.pdf; accessed 7/16/08 translated from Japanese

47 http://www.mofa.go.jp/mofaj/area/usa/keizai/j_us.pdf; accessed 7/16/08 translated from Japanese

48 https://www.calchamber.com/CC/BusinessResources/InternationalResources/AllAboutInternationalTrade/TradeStatistics.htm; accessed7/16/08

49 https://www.calchamber.com/CC/BusinessResources/InternationalResources/AllAboutInternationalTrade/TradeStatistics.htm; accessed7/16/08

50 http://tse.export.gov/SEDChartDisplay.aspx?UniqueURL=0oyjqob5vyklp03f2g1ghgbo-2008-7-17-19-8-57; accessed 7/15/08

51 http://tse.export.gov/SEDChartDisplay.aspx?UniqueURL=0oyjqob5vyklp03f2g1ghgbo-2008-7-17-19-8-57; accessed 7/15/08

52 http://www.cdfa.ca.gov/files/pdf/card/ResDir07_AgExport.pdf; accessed 7/22/08


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