• Register Email Updates

• Advanced Search
• Help

Japan-U.S. Economic Relations (Overview)

November 2007

As the two largest economies in the world constituting approximately 40% of the world GDP, Japan and the United States are becoming increasingly interdependent economically, and share important responsibilities for the growth and stability of the global economy.

Major Trading and Investment Partners

• The United States is Japan's largest trading partner: Japan's imports from the United States account for 11.8% of Japan's total imports. Japan's exports to the United States make up 22.5% of Japan's total exports.
• Japan is the second largest non-NAFTA trading partner of the U.S.: For the United States, Japan accounts for 8.0% and 5.8% of U.S. overall imports and exports respectively. Japan is the second largest trading partner of the United States among all non-NAFTA member nations, and the third largest importer of U.S. farm products.
• Japan is the third largest job creator in the U.S.: Japan's foreign direct investment in the United States totals $190 billion, and created approximately 610,000 jobs in the United States in 2004, which makes Japan the third largest job creator after the UK and Germany.

Japan-U.S. Economic Partnership for Growth

The Japan-U.S. Economic Partnership for Growth was launched in June 2001 in order to promote sustainable growth of Japan and the United States as well as of the world. The Partnership consists of: 1) Sub-Cabinet Economic Dialogue; 2) Regulatory Reform and Competition Policy Initiative; 3) Trade Forum; 4) Investment Initiative; 5) Financial Dialogue; and 6) Private Sector/ Government Commission.

• The Sub-Cabinet Economic Dialogue: High-level officials from both governments discuss measures to address regional and global economic issues as well as bilateral issues from a strategic perspective.
• The Regulatory Reform and Competition Policy Initiative: Both governments conduct constructive exchange of views on regulations and competition policy, with a view to reducing regulation, enhancing competition, and improving market access.

Strengthened Cooperation on Key Global Economic Issues

In the Japan-U.S. summit meeting in April 2007, Japanese Prime Minister and U.S. President, building on the strong alliance, agreed to strengthen cooperation in tackling critical global trade, energy and environmental challenges, in particular the following.

• Secure and Efficient Trade: The Japan-U.S. Study Group on Secure and Efficient Trade was established to discuss ways to make trade more secure without hindering efficient trade flows. The two governments are holding consultations on possible mutual recognition of Authorized Economic Operator programs, and on cooperation under the Megaports Initiative, for example.
• Intellectual Property Rights: In order to strengthen international cooperation on the protection of intellectual property rights, Japan, the United States and the European Union announced in October 2007 that they and their key trading partners will start a negotiation for an Anti-Counterfeiting Trade Agreement (ACTA) within the year.
• Energy Security: Japan and the United States will strengthen cooperation on innovative technological development and peaceful use of nuclear energy, with a view to achieving climate change mitigation, energy security, and economic growth at the same time.