Over the last decade, EU28 international trade in goods with Japan is characterised by a regular fall in the share of Japan in the EU28's total trade in goods, more significant for imports than for exports, and a continuous deficit. The share of exports to Japan in the EU28 total fell from 4.9% in 2002 to 3.3% in 2012 and the share of imports from Japan also dropped, from 7.9% to 3.6%. As a result, the EU28 trade deficit with Japan decreased from 30.3 bn euro in 2002 to 9.0 bn in 2012.

In the first six months of 2013, EU28 exports to Japan fell slightly compared with the same period of 2012 from 27.0 bn euro to 26.3 bn, while imports decreased more strongly, from 33.8 bn to 28.2 bn. Consequently, the EU28 trade deficit with Japan continued to drop, from 6.8 bn in the first half of 2012 to 1.9 bn in the same period of 2013. Japan was the EU28's 7th most important trading partner, accounting for around 3.2% of EU28 trade in goods.

Germany: main EU trading partner of Japan

Among the EU28 Member States, Germany (8.0 bn euro or 31% of EU exports) was by far the largest exporter to Japan in the first six months of 2013, followed by France (3.4 bn or 13%), Italy (3.0 bn or 11%) and the United Kingdom (2.6 bn or 10%). Germany (7.3 bn or 26% of EU imports) was also the largest importer, followed by the Netherlands2 (5.1 bn or 18%) and the United Kingdom (4.2 bn or 15%). The largest trade deficits with Japan in the first half of 2013 were recorded by the Netherlands (-3.5 bn) and the United Kingdom (-1.6 bn), and the largest surpluses by Italy (+1.6 bn) and France (+1.0 bn).

EU27 surplus in trade in services with Japan almost doubled between 2010 and 2012

In 2012, the EU27 exported 24.2 bn euro of services to Japan, while imports from Japan amounted to 15.6 bn, meaning that the EU27 had a surplus of 8.6 bn in trade in services with Japan, compared with a surplus of 5.9 bn in 2011 and 4.6 bn in 2010. The surplus in 2012 was mainly due to computer & information services (+2.6 bn), financial services (+2.1 bn) and travel (+1.5 bn). Japan accounted for just over 3% of total extra-EU27 trade in services.

Significant volatility in direct investments flows between the EU27 and Japan

Foreign Direct Investment (FDI) flows between the EU27 and Japan show large variations. In 2012, the EU27 invested 0.4 bn euro in Japan, down from 3.1 bn in 2011. Japanese investment in the EU27 also fell in 2012, to 3.4 bn compared with 10.4 bn in 2011.