GCC exports to Japan dip by 50% in four months

A sharp fall in oil prices allied with lower crude supplies to depress the exports by the UAE and five other Gulf countries to Japan by more than 50 per cent in the first four months of 2009, according to official Japanese data.

The decline reversed several years of rapid growth in their exports to the largest importer of Gulf oil and sharply narrowed a trade surplus enjoyed by the six-nation Gulf Co-operation Council (GCC) with Japan for a long time.

Japan's exports to the six members also sharply declined in the first four months of 2009 because of the recovery of the US dollar, lower demand in the region, a fall in global prices and a steady growth in trade between the GCC and China.

From about $46.81 billion (Dh171.88bn) in the first four months of 2008, exports of goods by the 28-year-old Gulf alliance to the southeast Asian industrial giant plunged to nearly $21.75bn during the same period of this year, showed the figures by the Japan External Trade Organisation (Jetro).

Jetro's statistics showed the UAE recorded the largest decline in its exports to Japan as they plummeted by nearly 60 per cent during that period. But the UAE maintained its position as the largest Gulf market for Japanese products despite a plunge in its imports this year.

Saudi Arabia's exports to Japan slumped by nearly 54 per cent, while those by Kuwait tumbled by around 55 per cent.

The decline was around 54.4 per cent in Bahrain's exports, and 39.5 and 44 per cent in those by Qatar and Oman. The drop cut the GCC's trade surplus with their main economic partner to around $16.06bn from $38.28bn in the same period.

Experts said the fall in the region's exports to Japan was a result of a steep decline in oil prices.

From an average $95 during January-April 2008, the price of Opec's basket of crudes plummetted to only around $44 in the same period of 2009.

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