Israel Japan | Business Guide | 2018

Export of goods M$ M$ Export of goods Trade balance Import of goods Israel-Japan Trade Relations Imports are the dominant factor in trade between the two countries. The challenge for the coming years is to increase the scope of exports. Israel-Japan > Business Guide > 2018 012 > General Information > Trade figures 1 Export and import of goods, excluding diamonds. All trade data herein excludes diamonds. 2 Based on trade averages in 2012-2017. 3 Compared to the average exports in 2012-2016, which totalled $722 million. I n 2017,trade 1 between Israel and Japan totalled some $2.8 billion, a drop of 6 percent compared to 2016,when it totaled $3 billion. The drop stems from a decrease in imports, after 2016 saw a sharp increase in imports of goods from Japan. Imports are the dominant factor in trade between the two countries, representing 70 percent of trade. 2 In 2017, imports of goods dropped by 12 percent and totaled $2.05 billion, after 2016 experienced a more than 100 percent increase (for a total of $2.3 billion). Exports of goods to Japan grew in 2017 by 11 percent, totaling $780 million (representing 30 percent of trade). Considering the dominance of imports in trade, Israel has an ongoing trade deficit with Japan. Israeli Exports to Japan Since 2011, there has been a drop in Japanese demand for Israeli goods.This negative trend is seen both in the decrease in the scope of exports and in the drop in the percentage of exports to Japan out of Israel’s total exports to Asia (breakdown below). After the peak year of 2011, when exports totaled $840 million, there has been a steady decline in exports to Japan. At the same time, unlike the trend of recent years and after two consecutive years of decline, 2017 saw an increase in of exports, which totaled $780 million – an 11 percent growth compared to the 2016 and an 8 percent growth compared to the average in recent years. 3 As of now,Japan is the fourth largest target market for Israeli exports to Asia.Since 2007, there has been a decrease in the ratio of exports to Japan compared to the rest of the continent.If,for example,in 2007 Japan represented 12.6 percent of total exports to Asia, by 2015 the nation’s part had dropped to only 6.4 percent.However,in the last two years Japan’s portion has again increased and, by the end of 2017, exports to Japan represented 9.2 percent of total exports to Asia. Development of Trade in Goods Israel-Japan, excluding diamonds Exports to Japan 2007-2017, export of goods, excluding diamonds (in millions of $) Scope of imports and exports of goods, excluding diamonds, 2007-2017