RECENT TRENDS IN JAPAN-U.S.
ECONOMIC RELATIONS

Free market Forces Yield Balance of Trade Improvement

Q.

Is it true that Japan imports only agricultural products from the United States?

A.

Not at all. Japan surely buys agricultural products from the United States more than any other countries. At the same time, Japan imports a great volume of manufactured goods from the United States as well. With the expansion in exports of American products to Japan, manufactured products represent a steadily growing share. In 1980, the ratio of manufactured products to overall American exports to Japan was 44.1%. It grew to 65.5% during the first half of 1995. Among the manufactured goods, import of automobile products is likely to continue to grow. In addition, reflecting the growing interest in computers and multimedia including the Internet, further imports of following products are expected: computer, semiconductor, communications equipment and other high-tech products.