TOKYO: Japan’s bilateral trade with the Gulf countries fell 3.82 per cent in 2014 to $164.76 billion, compared to $171.31 billion in 2013.
This decline was mainly attributed to an estimated 4.28 per cent average fall in the price of crude oils that Japan imported from the Gulf Cooperation Council (GCC) countries in 2014. The average price of crude oil fell to $104.76 per barrel in 2014, from $109.44 per barrel in 2013.
The effect of the depreciation in the value of Japanese yen against the US dollar, estimated to be slightly more than eight per cent in average, during 2014, has also reflected in the reduced value of bilateral trade. Though Japan’s trade deficit with the GCC countries is huge, the decline in crude oil price is gradually bringing down the deficit. In 2014, the deficit was brought down by 9.14 per cent to $114.9 billion, compared to $126.5 billion in 2013.
Japan’s world trade during the year 2014 slipped marginally by 2.83 per cent to $1,503.7 billion compared to $1,547.5 billion in the previous year. Exports declined by 3.3 per cent to $690.9 billion from $714.9 billion, and imports by 2.39 per cent to $812.8 billion from $832.6 billion. As a result of higher decline in exports compared to imports, Japan’s overall trade deficit increased by 3.48 per cent to $121.9 billion in 2014 from $117.8 billion in 2013.
Japan’s exports to the GCC countries showed a strong recovery in 2014 supported by increased demand for machinery and equipment, and iron and steel products. The export value of general machinery surged 24 per cent to $3.45 billion and that of electrical machinery 23.7 per cent to $1.2 billion in 2014.
Export of self-propelled dozers witnessed an increase of 46.5 per cent in value to $564.4 million in 2014 from $385.3 million in the previous year. Similarly, export of air pumps rose by 47.6 per cent to $270.7 million and steam turbines by 110.7 per cent to $198.1 million.
Export of machinery for temperature changing and steam generating machinery jumped five to six times in 2014, compared to the previous year. Export of iron and steel products, such as tubes and pipes, surged by 32.2 per cent to $1.58 billion. Export of beverages, including mineral and aerated waters registered a considerable increase of 35.6 per cent to $45.1 million in 2014 from $33.3 million in 2013.
Motor vehicle exports, covering almost 60 per cent of Japan’s total exports to the GCC, increased by 8.77 per cent to $14.79 billion, of which, passenger motor cars above 3000cc engine capacity rose the most, by 10.7 per cent, to $7.6 billion. GCC countries remained to be one of the top export markets for motor vehicles from Japan. There had been notable increases in the export of foodstuff from Japan to the GCC in 2014, especially to the United Arab Emirates. Though the value was small compared to major other commodities, foodstuff export to the GCC rose by nearly 17 per cent to $83.04 million in 2014, compared to $71.08 million in 2013.
Particularly to the UAE, the increase in foodstuff exports was registered at 38.5 per cent to $50.33 million in 2014 from $36.33 million in the previous year. Most of the increases in food exports to the UAE were attributed to non-alcoholic beverages. Among foodstuff exports to the GCC, 35.58 per cent increase was registered for beverages alone, and 19.3 per cent for fish and seafood. Following table illustrates the growth of food exports to the GCC.
Pakistan to get $3b loan from Islamic Trade Financing Corporation
ISLAMABAD: Islamic Trade Financing Corporation (ITFC) to provide Pakistan with a $3 billion loan, according to an official statement released...
