Economic downturn leads to sharp decline in Japan's trade with UAE

Japan yesterday reported a huge decline in its two-way trade with the UAE in the first five months of the year.

Its oil imports from the UAE declined by more than 60 per cent and its exports to the Emirates fell by 35 per cent.

Japanese Embassy figures reveal that Japan's imports, mainly oil, from the UAE dropped by 60.8 per cent to $7.6 billion (Dh28bn) and exports declined by 35.1 per cent to $2.6bn.

The embassy did not give figures for the corresponding period in 2008 but said last year witnessed robust growth in trade between the two countries.

Japan's exports rose by 34 per cent to $10.8bn last year over 2007 and its imports from the UAE surged by 43.7 per cent to $46.4bn.

Ambassador Tatsuo Watanabe said the trade between the UAE and Japan had been affected by the global downturn. "The relationship between the UAE and Japan is in very good shape and friendly," he said.

"The trade exchange between the two countries is not as good as it used to be because of the global downturn. Because of the downturn economies are not growing so fast. In the sense of trade, of course it is not so good, but given the current circumstances both sides are still doing very well. Japan continues to import UAE oil and other products, while Japanese products continue to come to the UAE."

Watanabe spoke to Emirates Business after opening the region's first branch of Oishii Nippon, a Japanese brand that promotes expensive fruit as luxury products meant for special gifts, at Abu Dhabi's Fotouh Al Khair Mall.

Watanabe said the venture was intended to boost Japan's in the region, and added: "The opening of the outlet in the UAE is meant to bring agricultural products aboard Japan's export platform, which has traditionally been dominated by electronics, machinery and vehicles.

"Japanese agriculture has a long history and tradition through which highly sophisticated cultivation techniques have been developed, particularly in the area of fruit cultivation. Such techniques are combined with ceaseless and tireless efforts on the part of farmers to produce delicious products.

"I hope that people in the UAE may have a flavour of Japanese culture through tasting these products. In ancient Japan fresh fruit was given as gifts by the nobility in specially designed cloths known as Furoshikis, which were originally used to wrap treasure. Hence the practice of giving fruits in Furoshikis by the noble class came to symbolise their respect for the recipient."

Mark Nakada, General Manager of the Japanese government's Kintetsu World Express Sales initiative, said the Abu Dhabi outlet and another due to open in Dubai by the end of the month would have a sales target of $1 million per year.

"There is great potential for Oishii Nippon agricultural products in the region," he said. "With the opening of this first GCC branch, another in Dubai and one in Kuwait later this year we will continue to expand this business in the region. This is a business offering luxury fruits coupled with luxury services like traditional gift wrapping and home delivery."

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