JETRO Global Trade andInvestment Report
2012〜Companies and people move forward
towards globalization〜
Overview

CONTENTS

JETRO Global Trade and Investment Report 2012
<Global trade and investment>
1. High growth potential among emerging countries in spite of the slowing world economy
2. World trade hits a record high in 2011 then rapidly decreases in 2012;changes seen in trade structure of emerging countries
3. Global FDI ﬂows increase for second consecutive year,
but projected to slow down in 2012 due to poor M&A performance<Japanese trade and FDI>
4. Japan sees robust exports of highly functional consumer goods and surge
in imports of LNG and emergency supplies
5. Japanese FDI:
-Japanese outward FDI: Clear preference for emerging economies-Japanese inward FDI: Active establishment of manufacturing/R&D bases<WTO and FTAs>
6. Importance of WTOʼs multilateral trade frameworks reaﬃrmed
7. Present status and future outlook of FTAs:-Progress in FTAs of the world and trends in Japan -Japanese SMEs engaged in exports have more room to consider using FTAs<Overseas development of Japanese SMEs>
8. SMEs accelerating overseas business development
9. Overseas business development of the Japanese service sector & export promotion ofagricultural, forestry and ﬁshery products and foodstuﬀ
10. Eﬀorts towards securing and fostering SME global human resources
JETROʼs global network
Detailed materials can be downloaded from the following website.

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http://www.jetro.go.jp/en/news/releases/20120808100-news<<Exclusion of liability clause>>

Responsibility for decisions made based on the information provided in this leaﬂet shall rest solely on readers.
Though JETRO strives to provide accurate information, JETRO will not be responsible for any loss or damage
incurred by readers through the use of the information.

1. High growth potential among emerging countries
in spite of the slowing world economy◆Due to the European debt crisis, the world economy in 2012 has shown signs of slowdown. The
growth of emerging and developing countries is also at an increased risk of a downward swing.
◆Emerging and developing countries, however, will continue to lead the global economy partly
because of their expanding population. As these countries will witness peaks in the demographic
bonus at different times, the economic growth of these countries is expected to differ
respectively.
GDP growth by country and region

(%)
2010
5.1

3.8

2012(Projections)
3.3

2013(Projections)
3.6

Advanced Economies

3.0

1.6

1.3

1.5

Emerging/Developing Economies

7.4

6.2

5.3

5.6

World

2011

9.5

7.8

6.7

7.2

China

10.4

9.2

7.8

8.2

India

10.1

6.8

4.9

6.0

ASEAN5

7.0

4.5

5.4

5.8

Asia

Note: The deﬁnitions of developed and emerging/developing countries follow the World Economic Outlook (IMF).
Asean5 refers to Indonesia, Malaysia, Philippines, Thailand and Vietnam.
Source: "WEO, October 2012″(IMF).

Peak times of the demographic bonusesof major emerging/developing countries

Ratio of contribution by advanced and emerging/developing economies to global economic growth
Advanced Economies
2010-2017

Emerging/Developing Economies

37.6(Projections)

2000-2010

62.4

50.9

49.1

1990-2000

79.3

20.7

1980-1990

83.1

16.9

0.0

10.0

20.0

30.0

40.0

Source: "WEO, October 2012″(IMF).

2

50.0

60.0

70.0

90s
Japan

80.0

90.0 100.0

(%)

2010s
China
Thailand
Vietnam
MyanmarRussia

2030s

2040s

Bangladesh
Saudi Arabia
Iran
Argentina

Philippines
Cambodia
Laos
India
PakistanSouth Africa
Egypt

2020s
Indonesia
TurkeyBrazilMexicoNote: The demographic bonus was calculated by deviding the
productive-age population by the dependent population. The situation
where the demographic bonus is 2 or more is generally regarded as"demographic bonus period". The chart above shows when demographic
bonus in each country is at its peak.
Source:"World Population Prospects" (U.N.).

Copyrightⓒ2012 JETRO. All rights reserved.

2. World trade hits a record high in 2011 then rapidly decreases in 2012;changes seen in trade structure of emerging countries◆Backed by the increased price of natural resources, the value of world trade in 2011 surpassed therecord marked in 2008. While the exports of resource-rich countries have grown, the exports of
the worldʼs largest exporter country, China, have grown at a sluggish pace. Since the beginningof 2012, the growth rate of world trade has been significantly blunted.
◆With the increasing presence of the emerging countries as a consumer market, the share of trade
between emerging countries has been increasing.
Long-term trends in world trade (exports)(Export value, US$ billion)(Growth, %)20,00050.0

18,000

US$18trillion

16,00040.0
30.0

14,00012,00020.0

10,000

10.0

8,000

0.0

6,000

△10.0

4,000

Export value

2,000

Export growth(real)

Export growth(nominal)

0
1949

1954

1959

1964

△20.0

1969

1974

1979

1984

1989

1994

1999

2004

△30.0
2009 2011(Year)

Source: "IFS, June 2012" (IMF).

Semiannual trend in world trade(exports)

Trade between emerging countries (exports)(Export value, US$ billion)(Export value, US$ billion)(YoY, %)

9,000

30.0

8,000

3000

Value of trade between emerging countries

20

2,500

7,000

Composition ratio of trade between emerging
countries in world trade

10

6,000

0

5,000
4,000

−10

2,000

−30

16.0
14.0

10.0
1,500
8.0

−20

1,000

18.0

12.0

3,000
2,000

(Composition rate, %)

1,000

6.0
4.0

0

−40

500

First Second First Second First Second First Second First Second First
half half half half half half half half half half
half
2007

2008

2009

2010

2011

World (Reporting total)
Percentage change, YoY

2012

2.0
0

0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(Year)

Source: Statistics from individual countries/regions

Source: Short-term merchandise trade statistics (WTO)

Copyrightⓒ2012 JETRO. All rights reserved.

3

3. Global FDI ﬂows increase for second consecutive year,

but projected to slow down in 2012 due to poor M&A performance◆The amount of world foreign direct investment (FDI) had been increasing for two straight years
since 2009 , but still remained at 80% of its peak in 2007. Due to the slowdown of merger activities
triggered by the European debt crisis, the value of cross-border M&A for the first half of 2012
decreased significantly by 40% from a year earlier.
◆Chinaʼs inward FDI has seen some qualitative changes, such as more than half of the total amountis now going into non-manufacturing industries, and investments in the inland regions have also
increased.
Global FDI and cross-border M&As
(US$ billion)(US$ billion)

2,000

1,000

FDI in developed countries
FDI in emerging/developing countries
Global cross-border M&As(right scale)

1,800
1,600

900
800

1,400

700

1,200

600

1,000

500

800

400

600

300

400

200

200

100

0

2005

06

07

08

09

10

11

Note: FDI here is on inward FDI basis.
Sources: UNCTAD and THomson Reuters.

Chinaʼs inward FDI by industry sector

012(Year)(First half)

Chinaʼs regional inward FDI share
（%）

140

(US$ billion)

60.0

52.8%

120
100

100

（%）

50.0
39.9%

40.0

80
30.0
60
20.0

40
20

Other
Services

90

Leasing andCommercial
Services

80

BankingandInsurance
Wholesaleand Retail
Trade

30

0.0

East coast

50

Agricultural/
MiningShare ofservices
sector（right axis）

Central60

40

Manufacturing

Western

70

Real Estate

10.0

Northeast

Notes:(1) FDI here is on utilized FDI basis.
(2) The regions are classified as follows;
East coast: Jiangsu, Guangdong, Shandong, Zhejiang,
Shanghai, Tianjin, Beijing, Fujian, Hebei, Hainan.
Central: Hubei, Hunan, Jiangxi, Henan, Anhui, Shanxi.
Western: Inner Mongolia, Sichuan, Shaanxi, Chongqing,
Guangxi, Qinghai, Guizhou, Gansu, Ningxia, Yunnan,
Xinjiang, Tibet.
Northeast: Liaoning, Jilin, Heilongjiang.
Source: CEIC.

20
10

0

05

06

07

08

09

10

Note: FDI here is on utilized FDI basis.Year 2003 does notinclude banking and insurance.
Source: CEIC.

4

11(Year)

0
05

06

07

08

09

10

11
(Year)

Copyrightⓒ2012 JETRO. All rights reserved.

4. Japan sees robust exports of highly functional consumer goods
and surge in imports of LNG and emergency supplies◆Japanʼs trade balance in 2011 fell into a deficit for the first time in 31 years. Imports of liquefied
natural gas (LNG) for power plants have particularly surged, along with energy saving andemergency supplies.
◆In spite of the severe export environment, Japanʼs exports of sake and green tea have shown solid
growth led by a world-wide boom in Japanese cuisine. Surprisingly, exports of highly functional
Japanese consumer goods, such as leisure-related products, cosmetics and stationery items,
have also increased.
Japanʼs trade(US$ million)

2012
First half

2010

2011

Total exports

767,025

820,793

409,419

Total imports

691,447

853,070

446,112LNG imports

39,45460,14138,809Trade balance

75,578△ 32,277△ 36,693

Source: "Trade Statistics" (Ministry of Finance).

Surged imports products of energy savings andemergency supplies
2010

2011

Unit

Air-conditioners

4,172

5,579

thousand NO

Electric fans

7,689

17,242

thousand NOBamboo blinds

15

30

thousand MT

Oil space heaters

164

318

thousand NO

Flashlights

42,33987,521

thousand NO

Portable radios

3,827

10,530thousand NO

Source: "Trade Statistics"(Ministry of Finence).

Finished consumer goods increased in export quantities even after the Earthquake
Items

Gold or platinum jewerly and parts

Main Partner Countries(volume basis)Hong Kong

Australia

Switzerland

Motorcycles, cylinder capacity >800cc

U.S.

Netherlands

FranceBeauty & skin care preparation, not compressed

China

TaiwanHong Kong

Passenger motor vehicles, without gasoline or diesel engine

U.S.

FranceU.K.

Ball point pens

U.S.

MexicoHong Kong

Color television

VietnamPhilippines

ThailandSea urchins, jellyﬁsh, and sea cucumbers, frozen, dried or salted

China

Vietnam

Peru

Felt tipped & other porous-tipped pens & markers

U.S.

Germany

Saudi Arabia

Upright pianos

China

VietnamU.S.

Yachts, etc. for pleasure or sports, except sailboats or motorboats

U.S.

RussiaThailandTaiwanHong Kong

South Korea

Grand pianos

U.S.

China

Germany

Playing cards

Macau

Singapore

Hong Kong

Sunglasses

U.S.

Hong Kong

South Korea

Fermented beverages (sake, cider etc.)

U.S.

South Korea

TaiwanEye make-up preparations

Notes: (1)The consumer goods are chosen among 959 ﬁnal consumer goods which have export quantities, increased for two straight years.
(2)The areas in color are trading partners to which Japanʼs exports quantities increased for two straight years.
Source: "Trade Statistics" (Ministry of Finance).

Copyrightⓒ2012 JETRO. All rights reserved.

55. Japanese outward FDI:

Clear preference for emerging economies◆In 2011, Japanʼs outward FDI increased for the first time in three years, with investment to Asia
hitting a record high.
◆The rate of return on Japanʼs direct investment to China and ASEAN is higher than that to Europe
and the US, an indicator that the era of “profiting from Asia” has begun for Japan.
Japanʼs outward FDI by region
140(US$ billion)

120

OthersEurope100

Central and South America
North America
Asia
World

80

60

40

20

0
96

97

99

98

00

01

02

03

04

05

06

07

08

09

10

11 (Year)△20
Note: The yen-based value is converted to dollars by JETRO.
Source: "Balance of Payments Statistics" (Ministry of Finance, Bank of Japan).

Japanʼs rate of return on outward FDI
（%）

×

15.0

×

10.0

×

×

×
×

×

×

×

ASEAN
×

China

×
U.S.

5.0

EU

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Notes: (1) Rate of return on outward FDI ＝FDI earnings in the term / Average of outward FDI balances at the start and the end of the term x 100 (%). (2) The EU comprised
15 countries by 2003, 25 countries in 2004-2006, and 27 countries in 2007 onward.
Source: "Balance of Payments Statistics" (Ministry of Finance, Bank of Japan).

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Copyrightⓒ2012 JETRO. All rights reserved.

5. Japanese inward FDI:

Active establishment of manufacturing/R&D bases◆While total inward FDI to Japan has fallen below FDI withdrawal from Japan for two consecutive
years since 2009 , inward FDI in the manufacturing industry exceeded withdrawal for thesixth-year in a row and has been hovering at a stable rate.
◆On the back of governmental incentives including the “Subsidy Program for Projects Promoting
Asian Site Location in Japan”, a considerable number of new constructions and expansions offactories and R&D sites by foreign manufacturing industries have been witnessed.
Japanʼs inward FDI by industry
300(US$ hundred million)

Chemical/Pharmaceuticals
Electric machinery and equipment

250

Transport machinery and equipment
Telecommunications

200

Wholesale/Retail
Finance/Insurance

150

Others
Total
Manufacturing

100

50

0

△50

Manufacturing

△100

△150

05

06

07

08

09

10

11

(Year)

Note: The yen-based value is converted to dollars by JETRO.
Source: "Balance of Payments Statistics" (Ministry of Finance, Bank of Japan).

Establishment/expansion of production/R&D bases
by foreign/foreign aﬃliated ﬁrms
Company (Country)

Industry

Location

Dou Yee International(Singapore)*

Electronic components /materials

Shobara City,
Hiroshima

L'Oreal (France)

Cosmetics

Kawasaki City,
Kanagawa

Eurocopter (France)*

Helicopters

Kobe City, Hyogo

Umicore (Belgium)*

Nonferrous metal materials /chemicals

Tokoname City, Aichi

Mahle (Germany)

Automotive parts

Nogata City, Fukuoka

Cabot Microelectronics(U.S.)*

Electronic materials

Tsu City, Mie

Notes: (1) Projects decided or announced in and after April 2011. (2) Firms with * are those that selected for"Subsidy Program for Projects Promoting Asian Site Location in Japan" in 2011.
Source: Companies' press releases and newspaper articles.
Copyrightⓒ2012 JETRO. All rights reserved.

7

6. Importance of WTOʼs multilateral trade frameworks reaﬃrmed◆Though the WTO Doha Round has been stagnant, the organization has still made significant
contributions to limiting the introduction of trade restrictions with its monitoring andsurveillance function as well as to settlement of international trade disputes with its judicial
function.
◆There are also signs that the WTOʼs rule making under plurilateral trade frameworks is being
revitalized. In May 2012, for example, the organization embarked on full-scale efforts to expand
product coverage of the Information Technology Agreement (ITA) aimed to abolish tariffs on IT
products.
◆With the official accession of Russia to the WTO on August 22, 2012 and that of Vanuatuʼs on
August 24, membership of the WTO has reached 157.
Three functions of the WTO and evaluation
Function

Evaluation

IssuesRule-making
function

Development of multilateral
trade rules and agreements
on trade liberalization.

×

Negotiations on the Doha
Round stand stalled.

Formation of sectoral consensus.

Monitoring
function

Examination of the status of
implementation of existing trade
rules and reporting on problems.

○

Working as a deterrent toprotectionism.

The remedial eﬀect on reported
problems questionable.

Judicialfunction

Judicial settlments of trade disputes
by the Dispute Settlement Body andsecuring implementation of its decisions.

○

Parties to disputes generally
respect decisions by the Dispute
Settlement Body.

Strong judicial function may not besustainable without adequate functioningof rule-making power.

Source: Prepared based on information obtained from various media reports and seminars.

Discussions on the expansion of products covered by the ITA<Current ITA-covered items>
Estimated size of trade: US$1,310 billion<Expected expanded coverage>
Expected size of expansion: US$ 200-300 billion

Computers and peripheral equipment: PCs,
supercomputers, printers, monitors, scanners, etc.
Communication equipment: Cell phones, facsimiles, etc.
Semiconductors: Memory chips, wafers, CPUs,
semiconductor-manufacturing equipment, etc.

Electronic home appliances: Car navigation systems, digital video cameras,
digital TVs, DVD players, etc.
Advanced technologies: Electronic endoscopes, lithium-ion batteries.
Internet technology: Reception equipment, data processing equipment,
various parts and media.

Notes: (1) Actual coverage of items is based on a schedule of commitments by countries/regions based on HS numbers. Details of the expansion are based on various proposals.
(2) The amount of trade and the estimated size of expansion are based on the calculations by the European Centre for International Political Economy (ECIPE).
Sources: WTO, "Status of Implementation of WTO Agreements by Major Countries" (JETRO) and ECIPE data.

Gains from Russiaʼs accession to the WTO (examples)
SectorOverview

TariﬀsBinding tariﬀ ceiling will be 7.8% for all products (current average applied tariﬀ: 10.0%): 10.8% for agricultural products (current
average applied tariﬀ: 13.2%) and 7.3% for manufactured goods (current average applied tariﬀ: 9.5%).
The ﬁnal bound rate will be implemented on the date of accession for more than one third of all products. The longest periodof implementation is 8 years for pork, followed by 7 years for automobiles, helicopters and civil aircraft.

Automobiles
and parts

Vehicles: Bound at 15% after 7 years of implementation period (electric vehicles: bound at 15% after 5 years of implementation
period).
Auto parts: In principle, bound tariﬀ rate will be set at the level of current applied tariﬀ rates (5% for bumper, seat belt andgearbox, 10% for engine and 15% for auto body).

Services
Financials
Government procurement

Speciﬁc commitments on 116 out of 155 WTO services sub-sectors.
Insurance: Foreign insurance companies would be allowed to establish branches 9 years after Russia's accession.
Banks: Foreign banks would be allowed to establish subsidiaries and representative oﬃces. There would be no cap on foreign
equity in individual banking institutions, but the overall foreign capital participation in Russia's banking system would be
limited to 50%.
Russia will initiate negotiations for joining the WTO Government Procurement Agreement within 4 years of its accession.

Sources: WTO secretariat materials and Ministry of Foreign Aﬀairs.

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Copyrightⓒ2012 JETRO. All rights reserved.

7. Present status and future outlook of FTAs:

Progress in FTAs of the world and trends in Japan◆The number of FTAs in effect in the world has reached 221 as of the end of July 2012.
◆While the FTA coverage rate of Japan has remained at 18.6%, that of South Korea has grown due
to the FTAs concluded with the EU and the US.

Number of FTAs across the world(FTAs)

80

72
70

221 FTAs(as of the end of July, 2012)

60

53

50
40

33

29

30
18

20

10

10
0

1

2

0

4

3

3

12

12
10 10 11

17 17

16
10

11 11

5

3

50 60 65 70 75 80 85 90 95 00 05 10
|
|
|
|
|
|
|
|
|
|
|
|
59 64 69 74 79 84 89 94 99 04 09

7

99 2000 01 02 03 04 05 06 07 08 09 10 11 12

January-June(Year)

Source: The list posted on the WTO website (as of the end of July 2012).

FTA coverage of major countries(%)

FTA coverage rate
Exports
Imports+ Imports Exports
Japan

18.6

19.1

U.S.

Country/Region with FTA in force (Exports + Imports)
First

Second

Third

18.2

ASEAN（14.8）

India（1.1）

Switzerland（1.0）

38.8

45.3

34.4

NAFTA（28.7）

South Korea（2.7）

DR-CAFTA（1.6）

Total Trade Value

73.8

72.8

74.9

EU（64.1）

Switzerland（2.5）

EEA（1.6）

External Trade

26.4

29.6

23.6

Switzerland（6.6）

EEA（4.2）

Turkey（3.7）

34.0

36.5

31.5

ASEAN（11.6）

EU（9.6）

U.S. （9.3）

China

16.2

12.3

20.5

ASEAN（10.0）

Taiwan（4.4）

Chile（0.9）

India

17.9

21.6

15.4

ASEAN（9.9）

South Korea（2.2）

Japan（2.2）

ASEAN

60.0

59.2

60.8

ASEAN（24.7）

China （13.7）

Japan（10.4）

EU

South Korea

Notes: (1) The FTA coverage is the ratio of trade with countries/regions with which FTAs are in force (as of the end of July 2012) to overall trade. The coverage is based on trade
statistics for 2011. (2) Acronyms are used for the FTA among the United States and the Dominican Republic and Central American countries (DR-CAFTA), the Comunidad Andina(CAN) and the European Economic Area (EEA). (3) China excludes Hong Kong (7.6%) and Macao (0.1%). (4) FTAs for ASEAN include those that have yet to take effect in somemember states, but the value of trade for all member states were added up.
Sources: data from individual governments, DOT (IMF) and trade statistics of individual countries.

Copyrightⓒ2012 JETRO. All rights reserved.

97. Present status and future outlook of FTAs:

Progress in FTAs of the world and trends in Japan◆In response to the call of what is being referred to as the “era of FTAs between major trade
powers”, Japan is also considering new possible FTAs such as the Japan-EU EPA/EIA.
◆As for FTAs with emerging economies, which have significant market allure though many are
imposed with high tariffs as well as various investment restrictions, further examination isnecessary.
Trans-Paciﬁc Partnership (TPP) Agreement and Regional
Comprehensive Economic Partnership in East Asia (RCEP)
TPP

RCEP

Pace of negotiations◆Negotiations started in
March 2010.
◆"Broad Outline" announced
in November 2011.
◆14 negotiating rounds by
September 2012.

◆At the Senior EconomicOﬃcials Meeting in August
2012, the ministers paved theway for the launch of RCEP
negotiations in November
2012.

Depth of coverage◆Not limited to liberalizationof trade in goods and services.
◆21 areas of negotiations,
including "cross-sectoral items"
dealing with consistency
between regulatory systems.

◆Three Working Groups set
up on "Goods" ,"Services" and"Investment".

29.8％

28.4％

39.0％

44.2％

9.6％

49.1％

GDP (share in theworld)
Economic Ratio of intraregional tradescale
Population (sharein the world)

Notes: (1) Data on the economic scale are for 2011.
(2) The economic scale of RCEP is based on ASEAN plus Six.
Sources: METI, USTR, WEO (IMF) and DOT (IMF).

Progress towards initiating Japan-EU
EPA/EIA negotiations◆ June 2007
Task forces for private joint research launched inJapan and the EU (Secretariat in Japan: JETRO).
◆ July 2008
"Joint Report EU-Japan Taskforces" submitted to
the leaders.
◆ May 2009
Agreed to develop discussions on some speciﬁc
non-tariﬀ trade barriers at the EU-Japan Summit.
◆ April 2010
Agreed to set up Joint High-level Group (JHLG) at
the EU-Japan Summit.
◆ May 2011
Agreed to start the "scoping exercise" as soon as
possible at the EU-Japan Summit.
◆ May 2012
The completion of the "scoping exercise"announced at the Foreign Aﬀairs Council (Trade
Ministers) of the EU.
◆ July 2012
The European Commission decides to makerequest to all Member States to authorize it toopen the FTA negotiation with Japan.
◆ The negotiation expected to be launchedfollowed by an unanimous approval by the Council
to give the Commission a mandate to negotiatewith Japan.
Sources: Ministry of Foreign Aﬀairs and Ministry of Economy,
Trade and Industry.

Major countries/regions with which Japan has yet to conclude or consider FTAs
Country / Region

Export Export value
ranking(2011)

Japan's main export items
Electric equipment General machinery

All items MFN
FDIaverage-tariff rate (2005-2011 Cumulative)(US$ million, %)No. of Japanesefirms (2011)

Investment
agreement
conclusion

Taiwan4

50,692

5.6

4,862

996

2011

Russia15

11,801

Automobiles

General machinery

10.3

1,739

427

2000

Brazil26

6,195

General machinery

Automobiles

12.5

25,350360

Unconcluded

South Africa

28

4,311

Automobiles

General machinery

7.8

1,885

212

Unconcluded

Israel35

2,175

General machinery

Automobiles

5.2

16

25

Unconcluded

Pakistan

42

1,696

Automobiles

General machinery

15.8

264

72

2002

Norway45

1,402

Automobiles

Steel products

7.0

539

49

Unconcluded

Egypt

47

1,337

Automobiles

General machinery

17.4

300

52

1978

Bangladesh

50

1,069

Steel

Automobiles

12.9

399

246

1999

Sources: Trade Statistics/Direct Investment (Ministry of Finance), Tariﬀ Analysis Online (WTO), Annual Report of Statistics
on Japanese Nationals Overseas (Ministry of Foreign Aﬀairs) and METI.

10

Copyrightⓒ2012 JETRO. All rights reserved.

7. Present status and future outlook of FTAs:

Japanese SMEs engaged in exports have more room to consider using FTAs

◆The utilization rate of FTAs by Japanese firms has been increasing year by year, and recently
companies have been actively using FTAs between third countries centering on Asia. The
utilization rate of small and medium-sized enterprises (SMEs) in exports, however, is lower thanthat of large-scale companies. These SMEs have room to make further use of FTAs as a way to
reduce cost.
◆Given the fact that many SMEs have voiced that they were not familiar with institutions as well as
utilization procedures of FTAs, information provision concerning FTAs is essential to promote
their further use.
Utilization of major FTAs Japan has concluded (exports)

（%）

50

Considering utilizing FTAs in exports
Utilizing FTAs in exports

45
40
35

8.2

13.1

11.8

14.1

30

11.8

11.4
11.4

20
15

11.6

11.5

25
34.7

29.1

25.6

10

26.3

32.0

31.9
24.1

19.4

0

All

Large SmallAll

Large Small

15.1

13.5

5
All

19.3

10.2

11.5

Large Small

All

9.6

15.8
14.0

21.3
12.4
Large Small

8.6

14.4
5.5

All Large Small

Chile

ThailandIndonesia

Malaysia

India

127 firms

937 firms

687 firms

697 firms

524 firms

Note: The number of ﬁrms is the number of ﬁrms that are exporting from Japan to respective countries or importing into Japan from respective countries.
Large means large corporations, while Small means small and medium-sized ﬁrms.
Source: FY2011 Survey on the International Operations of Japanese Firms (JETRO).

Reasons small and medium-sized ﬁrms are not utilizing
preferential FTA tariﬀ rates in exports
Item
Not aware of FTA/EPA systems or procedures％
29.9

Exports are direct exports via third parties such as trading ﬁrms
Other
(Free description)

No requests from importers, outside own business operations
Export volumes or export amounts are small

19.1

Procedures are cumbersome, costs are highSee little merit in utilizing FTAs as the diﬀerence between base tariﬀ rates and FTA
preferential tariﬀ rates is minimal in export destination countries

16.3

Note: The tallying was limited to small and medium-sized ﬁrms (Parameter: 498 ﬁrms).
Source: FY2011 Survey on the International Operations of Japanese Firms (JETRO).

Copyrightⓒ2012 JETRO. All rights reserved.

118. SMEs accelerating overseas business development◆Japanese SMEs have become increasingly eager to advance abroad. According to a JETRO survey,
the number of respondent SMEs which replied that they will expand their overseas operations
has increased by some 60% compared to the previous survey conducted three years earlier.
Behind this trend is an increasing number of firms hoping to harness demand in foreign markets.
Plans of SMEs for overseas business operations in the future (the coming three years or so)●FY2008 survey （n=557）

1.4

2.3

45.1

35.7

●FY2009 survey （n=565）

1.4
51.9

2.3

30.8

2.7

11.0

60%
Increase ●FY2010 survey （n=591）

0.5
66.0

20.1

1.9

8.8

●FY2011 survey （n=685）

2.7

0.9
71.4

0.0

3.2

12.2

20.0

4.2 2.9

18.0

40.0

60.0

2.6

80.0

100.0
（％）

Expand the scale of business

Maintain the status quo

See it necessary to downscale or withdraw from overseas business operations

No future plan for overseas business operations

OthersUnknown/no replies

Source: "FY2011 Survey on the International Operations of Japanese Firms " (JETRO).

Reasons cited by SMEs for advances into overseas markets
（%）
70.0
60.0
50.0

63.7 64.0 64.9

Total (n=1,294)

61.6

Entry already made (n=981)
Planning to enter into overseas markets in one or two years (n=94)
Planning to enter into overseas markets in several years (n=219)

Positive moves

Problems in the domestic
business environment

41.5

40.0
33.3

35.7
28.7 29.7

30.0
19.2

20.0

20.9

18.2

21.1

22.5
18.3
12.8

10.0
0.0

1.0
Increasing overseas
demandClient companies
entering overseas
markets

Appreciation of
the yenLabor costs andlabor regulations
inJapan

0.8

3.2

0.9

Concern overdomestic power supply

Notes: (1) The parameter (n) excludes ﬁrms that gave no reasons for their moves into overseas markets from ﬁrms that alreadyadvanced into or are planning to advance into and considering advancing into, overseas markets.
(2) Multiple answers were allowed for each item.
Source: "FY2011 Survey on the International Operations of Japanese Firms " (JETRO).

12

Copyrightⓒ2012 JETRO. All rights reserved.

9. Overseas business development of the Japanese service sector &export promotion of agricultural, forestry and ﬁshery products and foodstuﬀ≪Overseas business development of the Japanese service sector≫◆The overseas business development of Japanese retailers and other firms engaged inbusiness-to-customer services has been gaining momentum. The number of overseas shops run
by major Japanese convenience stores has exceeded that in Japan. The total number of shops inother Asian countries alone has also drawn close to the domestic figure.
◆In addition to major companies, leading medium-sized companies and SMEs under various
categories, including retailers, restaurants and beauty support services, have also expandedbusiness abroad. China is the most popular destination, with the US ranking second followed byother Asian countries such as Singapore and Taiwan. Half the Japanese companies which havelaunched business in China have located their bases in Shanghai.
Number of Japanese convenience stores in Japan and overseas(Stores)

50,00045,000■40,00035,000◆20,000■▲Asia: 34,972

▲

■

▲

▲

■

■

■

30,00025,000

◆

◆
■

◆

◆

◆

Overseas：44,628◆ Japan: 40,949

▲

▲

▲

15,000Americas, Hawaii: 9,111

10,000
5,000
0

＊

2006

＊

2007

＊

＊

＊

2008

2009

2010

＊

2011

＊ Europe: 545

2012(Year)

Notes: (1)The sum of Seven-Eleven, Lawson, Family Mart, CircleK Sunkus, Mini stop, as of February each year.
(2)"Overseas" incudes stores licensed by U.S. affiliates of Seven & I Holdings Co..
Source: Summary of financial statements of each company.

Locations of subsidiaries of services firms thathave already moved into overseas markets Indonesia
2.1%South Korea
3.6%

Other
13.5%

Thailand
3.6%
China
42.0%

Vietnam
4.1%
Taiwan5.2%
Note: Services ﬁrms that have already moved into overseas markets
are ﬁrms out of those responding to the JETRO survey that haveestablished one or more subsidiaries overseas and are still operating
there (n=160 ﬁrms).
Source: “Questionnaire Survey on Needs for Support for Entries into
Overseas Markets by Services Industry Firms ”, JETRO ( FY2011).

Copyrightⓒ2012 JETRO. All rights reserved.

Singapore
7.8%

U.S.
18.1%

13

9. Overseas business development of the Japanese service sector &export promotion of agricultural, forestry and ﬁshery products and foodstuﬀ≪Trends in exports of agricultural, forestry and fishery products and foodstuff≫◆Japanʼs exports of agricultural, forestry and fishery products and foodstuff in 2011 decreased by
11.6% compared to a year earlier. Import controls against Japanese foodstuff imposed aroundthe world following the nuclear accident, as well as the historical appreciation of the yen, haveplayed a large role in this. Even in the face of economic headwinds, however, many SMEs arecontinuing to make efforts to exploit overseas markets, utilizing opportunities such as trade fairs
and exhibitions abroad.
◆JETRO continues to be actively engaged in promoting the export of these products and in June2012 the organization made a policy proposal regarding this area to the Government of Japan.
Japanʼs exports of agricultural and ﬁsheryproducts and food
5,000
4,500
4,000

(¥100 milion)

The stronger yenʼs impact on agriculturaland ﬁshery products and food exports（％）

Export value
YoY(right scale)

60
50

3,500

40

3,000

30

2,500

20

2,000

10

1,500

0

1,000

△10

500

△20

0

△30

1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

Unknown/no replies(5.1％)

70

No impact(13.7％)

Small
negative
impact(34.2%)(Year)

Note: Agricultrual, forestry and ﬁsheries products/food: The sum of items "Foodstuﬀs andAnimals" and "Beverages and Tobacco"
Source: Ministry of Finance, "Trade Statistics"

Large negative
impact(47.0%)（n＝117）
Source: “FY2011 Questionnaire Survey on Exports of Agricultural, Forestry
and Fisheries Products and Food”（JETRO) .

Policy proposals to relevant government ministries on exports ofagricultural, forestry and ﬁshery products and food
Proposal 1: Continuous eﬀorts to urge other countries/regions towards the early removal of import
restrictions related to the nuclear power plant accident(Number of countries/regions implementing restrictions: 42 as of November 2012 decreased
from 51 immediate after the accident)
Proposal 2: Measures to deal with food safety restrictions by individual countries
Proposal 3: Promotion of talks on the quarantine of animals and plants
Proposal 4: Development of a system for intellectual property protection
Proposal 5: Strategic responses to logistics
Source: JETRO Task force for agricultural, forestry, marine product and food export promotion

14

Copyrightⓒ2012 JETRO. All rights reserved.

10. Eﬀorts towards securing and fostering SME global human resources◆With the growing importance of the overseas market, SMEs are increasingly having to expand
into other countries adapting to various local environments. These SMEs, however, often lack the
global human resources necessary to do this.
◆In addition to foreign language ability, there are three core competencies required of global
human resources: 1) the ability to take decisive action, 2) the ability to effectively convey oneself,
and 3) the ability to succeed in a multicultural environment.
◆Large Japanese corporations are able to secure and foster global human resources throughregular fulltime employment of foreign workers, sending young workers still new to theirrespective fields abroad and conducting overseas executive training programs.
◆SMEs, however, find it much harder to take such measures and are hesitant to launch business
operations overseas without such personnel. In spite of this, there are some SMEs making efforts
to expand abroad by independently securing the necessary human resources such as by utilizing
foreign students in Japan, former-trainees who completed special training courses for foreigners
in Japan, Japanese with volunteer work experience overseas, or retirees.
◆To secure and foster global human resources, the Government of Japan and relatedorganizations have begun support efforts such as overseas internship programs. For JapaneseSMEs to develop business closely involved with global markets from this time forward, theyshould focus their energy on “hito-zukuri (building people)” in addition to “mono-zukuri(manufacturing products)”.

Support measures and tools for securing and fostering global human resources●Overseas internship programs targeting young business people
e.g., the METI Global Internship Program (implemented by HIDA: the Overseas Human
Resources and Industry Development Association and JETRO); Osaka Prefectureʼsinternship program●Learning courses and seminars on overseas businesses
e.g., JETROʼs e-learning courses and seminars on the trade business, workshops oninternational business●Training courses for human resources abroade.g., Training courses in Japan for overseas engineers (HIDA)●Support for global human resource development of the private sector
Original training programs and projects organized by specialized organizations anduniversities with proven know-how on overseas dispatch of personnel and other personnel
training.
e.g., Accepting business people as overseas volunteers (JICA: Japan International
Cooperation Agency), programs by APU: Ritsumeikan Asia Paciﬁc University

Copyrightⓒ2012 JETRO. All rights reserved.

15

●For more information, please contact:●

Japan External Trade Organization
International Economic Research Division
Overseas Research Department
ORI@jetro.go.jp