11.50 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

UAE-Japan trade jumps 25.4% to $36.62bn

UAE imported vehicles worth $3,489.70 million in 2010 compared to $2,017 million in 2009 (FILE)

Published
By Staff

Japan’s trade with the UAE increased 25.38 per cent to $36.62 billion (Dh134.4 billion) in 2010 compared to $29.21bn in the previous year on the back of higher car imports by the UAE and Japan’s higher crude oil imports, Japan External Trade Organization (Jetro) said in a statement.

Though this increase was mainly attributed to an increase in the average price of crude oils that Japan imported from the UAE in 2010, a surge in Japan’s exports to the UAE has greatly contributed to the trade growth. UAE was the 11th largest trading partner of Japan in 2010, with a share of 2.50 per cent of Japan’s total world trade, it said.

Japan’s exports to the UAE grew by 12.96 per cent to $7.33 billion in 2010, against $6.49 billion in 2009. This increase in exports was against the backdrop of an increase in the value of Japanese yen that climbed an average 6.16 per cent in 2010. On the import side, Japan’s imports to the UAE grew by 28.93 per cent to $29.29 billion, against $22.71 billion in 2009.  The increase in the value of imports was almost corresponding to the increase in the price of crude oils that rose by 30.03 per cent on an average.

Japan’s largest single category of export to the UAE in 2010 was motor vehicles, covering 47.59 per cent of total exports to the UAE. Motor vehicle exports grew by 73.02 per cent to $3,489.70 million compared to $2,017 million in 2009. However, vehicle export to the UAE in 2010 was yet to reach the export value of $5,014.16 million it reached in 2008.

The second major category of exports to the UAE was general machinery, with a value of $1,201.45 million, covering 16.39 per cent of the total exports. This too was much behind the peak year 2008, when the export of general machinery reached $1,938.31 million.

Among motor vehicles, export of passenger motor cars jumped 107.21 per cent to $2,443.78 million in 2010, compared to $1,179.44 million in 2009.

However, for the purpose of comparison, the export of passenger cars was worth $3,614.29 million in 2008, a figure nearly 48 per cent higher than the figure in 2010. Comparing with 2009, major increase was seen in the export of passenger motor cars having capacity of 3,000 cc and above. Export of medium capacity cars (between 1,500 cc and 3,000 cc) increased by 88.5 per cent to $615.85 million, compared to $326.80 million in 2009 ($1,567.49 million in 2008).

Among trucks, major expansion was seen in the export of small gasoline trucks, having capacity of less than five tonnes. Export of small trucks surged by 57.40 per cent to $84.33 million in 2010 from $53.58 million in 2009. Export of diesel trucks having capacity between five tonnes and 20 tonnes has also grown by 22.16 per cent to $303.46 million in 2010 from $248.42 million in 2009.

Against the backdrop of a 7.74 per cent decline in the export of general machinery to the UAE in 2010 (to $1,201.50 million in 2010 from $1,302.25 million in 2009), major increases were recorded in the export of spark ignition engines, self-propelled bulldozers/angledozers, printing machines, ball and roller bearings and marine outboard engines. Machinery that saw a decline in exports were mainly air and liquid pumps, lifting machinery, heat exchangers etc.

Export of electrical machinery declined by 39.19 per cent to $689.56 million in 2010, compared to $1,115.56 million in 2009. 

Major items that saw considerable decline in exports were industrial equipments such as electric transformers and static converters, optical fibre cables, electrical appliances for switches, line telephone sets and storage batteries. Export of electrical appliances related to housing projects, such as, switches, relays, fuses, plugs, sockets, lamp holders, junction boxes etc. had declined by 78.80 per cent to $26.10 million from $124.10 million in 2009, indicating the persistent stagnation in the housing sector in the UAE.

However, even in the wake of down trends, export of consumer electronics like digital video and still cameras etc. grew by 6.64 per cent to $210.43 million and vacuum cleaners by 23.29 per cent to $14.97 million in 2010.

Similarly, export of carbon electrodes used in furnaces etc. increased 52.40 per cent to $26.35 million from $17.29 million in 2009, which was just $8.30 million in 2008. Export of electrical ignition/starting equipments for generators etc. rose by 60.47 per cent to $51.80 million from $32.28 million in 2009. 

Other major products that saw increases in exports were rubber products, iron and steel and their products, optical, photographic and cinematographic machinery, beverages and live animals. Export of rubber products, of which, 90 per cent were consisted of new tires, increased by 5.51 per cent to $556.76 million in 2010 compared to $527.68 million in 2009. Export of project-related materials such as iron and steel products rose by 14.10 per cent to $410.77 million from $360 million in 2009.

Major items among iron and steel products were tubes and pipes that saw a jump in exports by 69.74 per cent to $232.32 million in 2010, compared to $136.87 million in 2009, and $103.28 million in the peak year 2008. Export of iron and steel - mainly consisted of flat rolled products, angles, shapes or sections - rose 66.91 per cent to $158.56 million in 2010, compared to $95 million in 2009. Export of optical photographic, cinematographic or measuring goods or instruments showed an increase in export by 11.22 per cent to $88.71 million in 2010 against $79.76 million in 2009.

Export of non-alcoholic beverages including mineral waters, aerated or sweetened/flavoured waters showed an increase in 2010 by 35.63 per cent to $33.92 million in 2010, compared to $25.01 million in 2009. Similarly export of pasta such as spaghetti, macaroni etc. rose by 24.66 per cent to $1.02 million from $0.82 million in 2009. Export of confectionary, including white chocolates slightly declined to $4.27 million in 2010 from $4.67 million in 2009.

Export of live animals consisting of horse, asses or mule reached an amount of $14.48 million in 2010 from almost nil in the previous years. Export of plastics goods, textiles and glassware have remained more or less at the same level in 2010 compared to exports in 2009.  


Japan’s imports

Japan’s bulk of imports from the UAE constituted mineral fuels.

The value of Japan’s imports from the UAE surged 28.93 per cent to $29.29 billion in 2010 compared to $22.71 billion in 2009. Around 98.5 per cent of imports from the UAE were consisted of mineral fuels that include crude oils and other gaseous hydrocarbons. The value of crude oils alone covered 76.04 per cent of the total imports from the UAE in 2010, which was 21.07 per cent of the total value of Japan’s crude oil imports from the world. When considering the quantity of crude oil imports, Japan imported a total of 1,329.06 million barrels of crude oils from the world in 2010, in which, 278.12 million barrels were from the UAE. While the total quantity of crude oil imports by Japan in 2010 expanded 0.58 per cent, quantity of crude oil import from the UAE declined 2.70 per cent. 

The average price of crude oils surged 30.03 per cent in 2010 to $80.06 per barrel, compared to $61.57 per barrel in 2009. The expansion in the value of imports could be attributed mainly to the increase in the price of crude oils. UAE remained to be the second largest supplier of crude oils to Japan after Saudi Arabia, which supplied over 409 million barrels of crude oil to Japan during the year 2010.

Beside crude oils, Japan imports petroleum gases and other fuels in large quantities from the UAE. Major among the different petroleum gases that Japan imports from the UAE was liquefied natural gas, of which, the value of import stood at $3,104.64 million in 2010.

Other categories of gas imports were Liquefied Propane and Liquefied Butanes. There had also been an increase in the price of petroleum gases during the year 2010. The average price of petroleum gases imported from the UAE in 2010 had increased by 34.51 per cent to $642.94 per metric tonnes compared to $477.97 in 2009. For the purpose of comparison, the average price of petroleum gases in 2008 was $685.56 per metric tonnes.

Other imports from the UAE

Japan’s imports from the UAE other than mineral fuels were limited to a handful of items.

Among them, the major and traditional item of import in 2010 was aluminium in different forms. UAE has been a traditional source of semi-finished aluminium for Japan, and in 2010 Japan imported aluminium worth $329.83 million, which was 249.43 per cent higher in value compared to the value in 2009. In terms of quantity, Japan imported 139,641.56 metric tonnes of aluminium in 2010 at an average price of $2.36 per kg, compared to 51,175.27 metric tonnes at $1.85 per kg in 2009. Japan’s aluminium imports had nosedived in 2009 due to the economic slump caused by the global recession. 

However, due to the slow but steady economic recovery in Japan and its export destinations, the year 2010 turned to be a better year, and aluminium imports regained strength.

Japan imported $8.02 billion worth of aluminium from the world over in 2010, with Australia being the number one supplier, followed by Russia, China and South Africa. UAE was the 10th largest supplier of aluminium to Japan in 2010, covering 4.11 per cent of Japan’s total aluminium imports. Other suppliers of aluminium to Japan from the GCC block were Bahrain, Saudi Arabia and Qatar.

In addition to aluminium, Japan imported small quantities of copper articles, mostly copper scraps, precious stones (diamonds), electrical goods such as unrecorded media materials (discs, tapes, smart cards etc.), some readymade garments, food waste as animal feed etc. from the UAE, all together valuing under $75 million.

Japan’s world trade

Japan’s world trade grew 29.33 per cent to $1,464.34 billion in 2010, against $1,132.25 in 2009. Major increases were recorded in Japan’s trade with East-Asian countries such as Thailand, Indonesia, Malaysia, Taiwan, South Korea and China. China was Japan’s largest trading partner in 2010, with a bilateral trade of $303.10 billion, which was equivalent to 20.70 per cent of Japan’s world trade.

United States of America stood at a distant 2nd position with a bilateral trade of $186.11 billion, and a share of 12.71 per cent.

UAE was Japan’s 11th largest trading partner in 2010, being the 5th largest supplier and the 22nd largest buyer of goods.

Mineral fuels formed the largest single category of trade between Japan and world nations, with a value of US $ 211.6 billion, covering 14.45 per cent of Japan’s total world trade. The 2nd major commodity of trade was general machinery, of which the value stood at US $ 206.1 billion, covering 14.07 per cent of the total world trade. Trade in motor vehicles, the 3rd largest single commodity, was valued at US $ 161.4 billion, covering 11.02 per cent of Japan’s world trade.

The value of Japan’s total exports stood at US $ 770.00 billion, against a total import of US $ 694.30 billion, giving Japan a positive trade balance of US $ 75.75 billion in 2010, which is 164.14 per cent higher, compared to the trade balance in 2009.  Following is a list of major trading partners of Japan during the year 2010.

It is worth to note that Japan’s trade with its main Asian partners in 2010, such as countries like China, South Korea, Taiwan and Thailand had exceeded the level of trade that Japan had with them in 2008.