Value of Japan's trade with GCC declines on lower oil price and weak yen

Dubai: The value of two-way trade between Japan and the GCC countries fell by 5.9 per cent in 2013 to $171.3 billion (Dh628.7 billion), compared to $182.1 billion in 2012, according to the full year trade figures released by Japan External Trade Organisation (Jetro) Dubai.

Japan's exports to the GCC countries dropped 10.1 per cent off to $22.4 billion in 2012 compared to $25.0 billion in the previous year, and imports followed the same trend by a decline of 5.3 per cent to reach $148.9 billion from $157.2 in 2012.

Jetro attributed the drop in the value of the two-way trade to the decline in the average price and the volume of import of crude oil. During 2013, the average price of a barrel eased to $109.43 from $113.14 during the previous year. Another factor that contributed to the slide in the trade value was decline in Japan's exports to the GCC from the Tsunami affected areas of North Japan. The 22.24 per cent fall in the average value of Japanese Yen against the US dollars has also contributed to decline in the value of Japan's exports to the GCC.

Japan's major exports to the GCC countries in 2013 were motor vehicles, general machinery and equipment, electronics, iron & steel materials, rubber products, and plastic products. Motor vehicles made up 60.7 per cent of the total exports compared to 58.8 per cent in the previous year. However, the total value of vehicle exports to the GCC declined by 7.2 per cent to $13.6 billion from $14.7 billion. Though, motor vehicles,

Japan's motor vehicle exports to the GCC countries registered a 7.2 per cent decline to $13.6 billion in 2013 from $14.7 billion in 2012.

Luxury cars

Export of passenger motor cars fell by 9.1 per cent in 2013. UAE was Japan's top export destination for motor vehicles among the GCC countries and the sixth largest export market in the world behind the US, Australia, Russia, China and Canada. Saudi Arabia followed UAE as the second largest market in the GCC and seventh largest in the world. For luxury passenger cars over 3000 cc, UAE and Saudi Arabia were Japan's second and third largest markets respectively in the world. For passenger cars in general, and for luxury cars, the US was Japan's top export destination.

The value of Japan's machinery exports to the GCC countries declined by 18 per cent in 2013. Export of electrical machinery in 2013 decreased by 17.5 per cent compared to 2012.

Source: gulfnews.com

Copyright 2014. No portion of the materials on any pages of the Site may be reprinted, republished, modified, or distributed in any form without the express written permission of Foundation.