Japan is prosperous country, with the world’s second largest economy with a GDP of roughly $4 trillion in 2002.. Japan is the largest overseas market for U.S. exporters, with imports from the U.S. in excess of $58 billion in 2003. Opportunities for competitive U.S. companies in the world’s second largest economy are better than they have ever been. Japan’s consumers buy American products ranging from music to furniture.
U.S. firms will find excellent markets for their goods and services across a broad range of sectors. Firms in the energy business will find new opportunities as Japan deregulates its power generation market and studies the privatization of the national oil exploration company.
Japan’s consumers are rich, sophisticated and highly diverse in their interests and tastes, and U.S. firms that can find a way to cater to those tastes and interests will find that the world’s second largest consumer market can be very profitable.
Optimism about the opportunities in this four trillion dollar economy must be tempered with realism. While Japan is more open to foreign goods and services today than it has ever been, Japan’s reputation for protectionism, red tape, collusion and competitiveness is well deserved. This is still a difficult market. The Japanese economy remains over-regulated, and those regulations can be used to hinder foreign firms’ attempts to gain access to the market.
In 2004, Arizona exported over $440 million worth of products to Japan making it Arizona’s tenth export market.
Best prospects (by sector) for US exports:
- Computer hardware and software
- Telecommunications
- Medical equipment
- Pharmaceuticals
- Construction services
Source: US Foreign Commercial Service
A full copy of the Country Commercial Guide to Japan can be obtained through the Market Research resource at: http://www.export.gov