TOKYO: While mineral fuels constitute around 76 percent of the total trade between the two sides, crude oils alone constitute nearly 53 percent. When comparing the first half of 2015 with the same period in 2014, the average price of crude oils fell by nearly 50 percent in 2015 – from $110.57 to $57.63 per barrel. The value of Japan’s exports to the GCC dropped by nearly 8 percent to $11.05 billion from $12 billion.
Since the volume of exports remained almost the same, this decline in export value is attributed to the depreciation in the Japanese yen against the US dollars. Japan’s currency depreciated by an average 16.9 percent during the first six months of 2015, comparing with the same period in the previous year, making GCC countries pay less in US dollars for their imports from Japan.
As a result of the fall in the price of mineral fuels, Japan’s trade deficit with the GCC countries declined by 54.7 percent to $28.26 billion during the first six months of 2015, compared with $62.46 billion during the same period in the previous year.
Japan’s deficit with the world as a whole was also brought down during this period from $74.2 billion to $14.6 billion, mainly due to the impact of declining fuel oil prices, and partly due to reduced imports from major trading partners of Japan like China, Australia, South Korea and Malaysia.
The value of Japan’s exports to the GCC countries shrank by 7.9 percent to $11.05 billion during the first half of 2015, compared with $12 billion during the same period in the previous year.
The largest component of Japan’s export to the GCC is motor vehicles, valuing at $6.55 billion and covering 59.3 percent of the total exports. UAE topped among the GCC countries taking nearly 34 percent of Japan’s motor vehicle exports to the GCC. Saudi Arabia stood second with a share of 24.5 percent.
Other major exports were general machinery, electrical machinery, iron and steel, tires, optical goods, plastic products, textiles, chemicals and beverages. Among general machinery, export of steam turbines rose by 140 percent to $140.41 million from 58.5 million in the previous first half. Similarly, export of printing machinery showed a surge in export by 43.4 percent to $71.53 million from 49.89 million. However, most other
Export volume remained stable though. GCC, as a single block is in the 7th position in size as an export market for Japan, comparing with Japan’s other export markets. Others ahead of the GCC are countries like USA, China, South Korea, Taiwan, Hong Kong and Thailand in the order of market size. Country-wise, UAE stood at the 18th position and Saudi Arabia at the 21st position.
