Tokyo: Japan’s exports declined by 12 percent in August last year. Japan’s exports were affected by trade tensions and tax hikes between the United States and China, analysts say. Exports to Japan have also been affected by the fact that China and the US are the major markets for Japanese goods. Japan’s exports of machinery, vehicles and chemicals all declined. Japan’s imports have also been declining in August. The decline in imports is the highest in the last three years. In Japan too, the demand for goods in the market has slowed. Shipping to the US has declined by 4 percent while shipping to China has decreased by 12 percent. Overall, Japan’s Customs Department said that exports and imports fell by 6 percent. Japan’s exports to the United States in August amounted to $ 4.37 billion, while imports fell further than exports. Japan’s Ministry of Finance has expressed happiness that trade exports are more than just imports. This is the first time a recent survey of Japanese businesses has seen such a huge impact on Japan’s economy since the earthquake and tsunami of 2011. Although a trade agreement was agreed between Japan and the United States last month, the final deal is yet to be finalized. During the meeting of the group of the world’s leading industrialized nations (G-7), news of this agreement was made public before talks between the two countries were held in France.
Japan’s Finance Minister Toshimichu Motegi, who is in charge of trade talks with the United States, said in a brief response to reporters in Washington that the talks had made great progress. The three-day trade talks were held between the Japanese delegation of Minister Motegi and the US Trade Representative, Robert Lightiser. US President Donald Trump and Japanese Prime Minister Shinzo Abe have a very cordial relationship, but President Trump has been accusing Japan of gaining unexpected benefits from the US in bilateral trade. He emphasized the need to make trade relations between the two countries more inclusive. Both Leitiser and Motagi have agreed to make Japan the tax levied on U.S. agricultural products, according to the Trans-Pacific Partnership (TIPP) agreement. Also, Japan has agreed to reduce the tax on meat products imported from the United States and not to reduce the quotas on milk products. Japan has previously promised to treat other countries in terms of agricultural products as per the TIPP agreement. In the last agreement, the US said it would not impose additional taxes on Japanese industrial goods. However, there is no consensus on US taxes on Japanese-impaired Japanese vehicles. Japanese newspapers said the final agreement between the two countries would be completed by the end of September.
Meanwhile, according to AAFP, Japan’s major stock market Nikkei 225 index fell slightly on Wednesday. The stock market, which has been rising for the past ten days, has closed at 21,960.71 points, down by 0.18 points. Topics also closed down at 1606.62 points, down by 7.96 points. Saudi Arabia’s oil factory raid is expected to affect the Tokyo stock market following oil prices. Investors are also waiting on the US Central Bank’s policy announcement. The central bank is expected to cut interest rates. The US central bank on Tuesday made billions of dollars available for the financial market, citing lack of cash.
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