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Japan

Japan Overview

Relations with New Zealand

 

 

Japan Overview

Key Facts



Geography/Demographics

Land Area - 377,923 sq km
Population - 127.6 million (2009 est.)
Capital City - Tokyo
Religion - The majority of the population observe both Shinto and Buddhism
Language - Japanese
Currency - Yen (Y)
Exchange rate - US$1 = Y85 (as at 12 August 2010). NZ$1 = 60 Yen (as at 12 August 2010)

Political

Political system Representative democracy
National government Coalition between ruling Democratic Party of Japan (308 seats), Social Democratic Party (7 seats) and People’s New Party (3 seats).
National legislature Bicameral Diet, comprising 480 member House of Representatives (lower house) elected every four years. 242 member House of Councillors (upper house) elected for six year terms, with one-half elected every three years
Last election Lower House: 31 August 2009, Upper House: 11 July 2010
Next election Lower House: by 30 August 2013
Upper House: July 2013
Head of State Emperor Akihito (since 7 January 1989)
Head of Government Prime Minister Prime Minister Naoto Kan
Selected Ministers:
Foreign Affairs: Katsuya Okada
Finance: Yoshihiko Noda
Education, Culture, Sports, Science and Technology: Tatsuo Kawabata
Agriculture, Forestry and Fisheries: Masahiko Yamada
Economy, Trade and Industry: Masayuki Naoshima
Defence: Toshimi Kitazawa
Main political parties (and leaders):
Democratic Party of Japan: Yukio Hatoyama
Liberal Democratic Party: Sadakazu Tanigaki
Japan Communist Party: Kazuo Shii
New Komeito Party: Natsuo Yamaguchi
Social Democratic Party: Mizuho Fukushima
Peoples’ New Party: Shizuka Kamei
Your Party: Yoshimi Watanabe
New Party Nippon: Yasuo Tanaka

Economic (2009 est.)

GDP (PPP) - US$4,137 billion
GDP per capita - US$32,600
Real GDP growth - 5.3%
Exports - US$516.3 billion
Imports - US$490.6 billion
Main exports - transport equipment, motor vehicles, electrical equipment, chemicals
Current account - US$131.2 billion
Inflation - 1.3%

New Zealand Trade (2009 est.)

NZ Exports (FOB) - NZ$2.8 billion
Main Goods Exports - Aluminium, dairy products (primarily cheese and casein), kiwifruit, forest products, meat, seafood, vegetables
NZ Imports (CIF) - NZ$2.9 billion
Main Imports - vehicles, oil, machinery and appliances, paper, computers, chemicals, iron and steel, telephone and broadcasting equipment.

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History

Japan has been a centralised state since the fourth century. For much of its history the country has been ruled by a Shogunate, or military government. In 1630 the Tokugawa Shogunate closed Japan to all foreigners. The United States (US) sent Commodore Matthew Perry and his fleet of black ships to negotiate a Treaty of Amity in 1854. This treaty established trade and diplomatic relations. Similar treaties were soon concluded with other countries.

The Tokugawa Shogunate collapsed in 1867, in part because of the new social, economic and political forces that developed after Japan’s isolationist policies were abandoned. Full sovereignty was restored to the Emperor in 1868. The ruling elite then methodically set out to establish a modern nation, adopting modern industries, technologies and political institutions. Japan’s military was also modernised and strengthened. These changes became known as the “Meiji Restoration”.

Japanese politics became increasingly dominated by the military, whose hard line was further bolstered by public reaction against the acute economic problems thrown up by the Great Depression. Japanese military expansion in China after 1931, signing of the Tripartite Pact with Germany and Italy in 1940, and occupation of southern Indo-China in 1941 led to increasing friction with Western powers. Faced with a US-imposed oil blockade, Japan launched a Pacific war with the US (and its Allies) through a surprise attack against US military bases at Pearl Harbour in Hawaii in 1941.

Japan surrendered unconditionally on 15 August 1945 after the atomic bombings of Hiroshima and Nagasaki. The allied occupation that followed introduced political, social and economic reforms before Japan regained full independence in 1952. By 1960 economic growth was gathering pace under cover of the Security Alliance with the United States and supported by policies instituted by the ruling Liberal Democratic Party (LDP) in close consultation with the bureaucracy and business.top of page

Political Situation

Naoto Kan was appointed leader of the Democratic Party of Japan (DPJ) and affirmed as Prime Minister by the Diet (Japanese Parliament) on 4 June 2010. His appointment followed the resignation of Yukio Hatoyama, the first DPJ Prime Minister of Japan, after just nine months in office, prompted by his failure to live up to a commitment to re-site a US military base in Okinawa. Hatoyama had led the DPJ to victory in Lower House elections in August 2009, breaking the almost uninterrupted 50 years tenure of the now opposition LDP. However, government arrangements are complicated. The DPJ lost control of the Upper House at elections in July 2010, and without a compensating two thirds majority in the Lower House, it can only pass legislation with the support of minor parties. .  [Note: this does not apply to the budget or international treaties however, as only a simple majority vote in the Lower House is required to pass these.]  As the next elections are not due until 2013, this “twisted diet” situation may last until then. 

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Economic Situation

Japan’s economy is the world’s second largest at market exchange rates and third largest in purchasing power parity. With an affluent population of 127 million, Japan boasts one of the world’s largest consumer markets.

Before the current recession, Japan had emerged from a sustained period of low growth through a recovery driven by exports – especially to China – and industrial production. However, the recent global economic challenges have weighed heavily on the Japanese economy. The first half of 2009 saw Japan’s steepest GDP decline since 1974. In January 2009 production fell by 10% and exports by 45%. This decline was primarily a result of the heavy reliance of Japan’s economy on exports (such as vehicles and appliances). The export sector had also been suffering from the strength of the yen, which was pushed up as Japanese investors pulled their money back to Japan during unstable financial times abroad.

The Japanese government introduced a series of stimulus measures to support employment (particularly in small and medium sized enterprises) and to stimulate domestic consumption.  Japan’s government debt, estimated to have reached 192% of GDP in 2009, concerns about deflation, and the aging and shrinking population are significant problems that will have economic ramifications into the future.  Prior to the Upper House election in July 2010 Prime Minister Kan mooted raising the consumption tax (from five percent currently) as one means of addressing government debt but this proved unpopular and was cited as one of the reasons the DPJ lost control of the Upper House.

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Foreign Relations

Over the past decade, key foreign policy commitments for Japan have included contributing to UN peacekeeping operations, seeking permanent membership of the UN Security Council, and adopting a higher profile in regional affairs. Japan is one of the world’s largest donors of official development assistance (ODA) (the fifth largest OECD net donor based on 2008 figures). Japanese ODA plays an important role in many countries, including in the Pacific.

Relations with the United States, including the bilateral security alliance, remain a fundamental aspect of Japan’s foreign and defence policies. Japan was the first stop on President Obama’s first trip to Asia in November 2009. A disagreement over re-location of the Futenma US air base in Okinawa has been a preoccupation in the relationship with the US. 

Japan’s relationships with China and the Republic of Korea (ROK/South Korea) have been affected by historical issues relating to Japan’s colonial and wartime legacy and territorial disputes.   Both relationships are, however, fundamentally important to Japan and Japan’s leadership has made improving relations a priority in recent years.  A trilateral summit process established in 2008 provides Japan, China and Republic of Korea with regular occasions for dialogue.   

Japan is a member of the Six Party Talks aimed at denuclearising the Korean peninsula.   (Currently the Six Party Talks are in abeyance.) Japan does not have formal diplomatic relations with the Democratic People’s Republic of Korea (DPRK).  

Other priority relationships for Japan include relations with the ASEAN members, and with neighbouring Russia.   A long-standing territorial dispute over Russian-held islands off Hokkaido is an irritant in Japan’s relationship with Russia.  Both nations are seeking ways forward through diplomatic dialogue.

Japan supports multilateral initiatives (such as APEC) for enhanced dialogue and cooperation among the countries of the Asia-Pacific region.   It also plays an active role in the development of mechanisms for regional dialogue, including the ASEAN Regional Forum (ARF), ASEAN+3 (Japan, China, and Korea) and the East Asia Summit (EAS).   Japan introduced the Closer Economic Partnership in East Asia (CEPEA) initiative, which, if realised, would bring together ASEAN, Japan, China, Korea, India, Australia and New Zealand. 

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Relations with New Zealand

Bilateral Links

Japan is a major bilateral and regional partner of NewZealand.  Strong political ties are underpinned by a commonality of views, shared interest in stability, growth and development of the Asia Pacific region, and substantial economic, tourism and people-to-people linkages. The New Zealand-Japan trading relationship is one of NewZealand’s anchor trade associations.      

High-level contacts are maintained between New Zealand and Japan.  In October 2009, Prime Minister John Key made a state visit to Japan during which he and former PrimeMinister Yukio Hatoyama issued a JointStatement committed to bring new vigour and vision to the bilateral relationship. Ministerial visits to Japan are frequent.  A Prime Minister’s fellowship programme for Japan and reciprocal parliamentary exchanges have helped foster a New Zealand constituency in the Diet.  Both the Japanese Diet and the New Zealand Parliament have Japan/New Zealand Parliamentary Friendship Groups.

Japan and New Zealand are working together further to build engagement in a wide range of areas including trade (see below), science and technology, climate change and security.   

New Zealand is represented in Japan by an Embassy as well as NewZealand Trade and Enterprise and Tourism New Zealand offices in Tokyo.  New Zealand has honorary consuls in Fukuoka, Nagoya, Osaka and Sapporo.  The Honorary Consul in Sendai recently retired and a replacement is being sought.

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Trade and Investment

Japan and New Zealand have a strong trading history founded on long-established contacts, reliability, strategic investment, and high-quality products.  Trade between Japan and New Zealand is complementary, with supply by NewZealand of industrial inputs and counter seasonal agricultural products and by Japan of finished industrial goods and machinery.  Japan is New Zealand’s fourth largest trading partner (after Australia, the United States and China).   In 2009, NewZealand exports to Japan totalled NZ$2.8 billion and imports from Japan were valued at NZ$2.9 billion.   

New Zealand is working with Japan to reinvigorate the trade relationship including through an Officials Group process established in 2009 to examine ways further to develop the bilateral trade and economic relationship.  NewZealand expects the Officials Group process will provide both governments with information needed to decide inter alia whether to move to free trade agreement negotiations in the future. 

Reflecting the importance of services to the developed economies of Japan and New Zealand, services exports between the two countries make a significant contribution to bilateral trade, particularly in the education and tourism sectors.

New Zealand and Japan enjoy healthy two way flows of investment with Japan being New Zealand’s fifth largest investor. Investment from Japan in the year to 31 March 2009 totalled NZ$11.5 billion and NewZealand investment in Japan was NZ$3.6 billion.

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Cultural and people-to-people linkages

Japan and New Zealand have a strong trading history founded on long-established contacts, reliability, strategic investment, and high-quality products.  Trade between Japan and New Zealand is complementary, with supply by NewZealand of industrial inputs and counter seasonal agricultural products and by Japan of finished industrial goods and machinery.  Japan is New Zealand’s fourth largest trading partner (after Australia, the United States and China).   In 2009, NewZealand exports to Japan totalled NZ$2.8 billion and imports from Japan were valued at NZ$2.9 billion. 

New Zealand is working with Japan to reinvigorate the trade relationship including through an Officials Group process established in 2009 to examine ways further to develop the bilateral trade and economic relationship.  NewZealand expects the Officials Group process will provide both governments with information needed to decide inter alia whether to move to free trade agreement negotiations in the future. 

Reflecting the importance of services to the developed economies of Japan and New Zealand, services exports between the two countries make a significant contribution to bilateral trade, particularly in the education and tourism sectors.

New Zealand and Japan enjoy healthy two way flows of investment with Japan being New Zealand’s fifth largest investor. Investment from Japan in the year to 31 March 2009 totalled NZ$11.5 billion and NewZealand investment in Japan was NZ$3.6 billion.

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Education

There is a wide range of links between New Zealand and Japanese educational institutions.   Japan is New Zealand’s third largest source of overseas students with New Zealand being a popular destination for many Japanese high school and tertiary students and people wishing to improve their English language abilities.   Around six percent of all Japanese students and researchers that choose to study abroad come to New Zealand.   

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Science and Technology

Japan is one of New Zealand’s priority science partners and both countries.  This is reflected in a Science and Technology Cooperation Agreement signed in October 2009.   Science links have strengthened over past years with the development of joint research projects and information-sharing.  InNewZealand, a science and technology coordinator for Japan was appointed to facilitate collaborative links. 

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Defence

New Zealand’s defence and security relationship with Japan has grown in recent years, reflecting common security concerns and interests.   Engagement includes defence talks, high-level military visits, ship visits, NewZealand Defence Force participation in multilateral seminars hosted by Japan, and sharing of expertise in areas of mutual interest such as peacekeeping.    

NewZealand and Japan also work closely in multilateral defence settings such as the defence track of the ASEAN Regional Forum and the Proliferation Security Initiative.   Royal New Zealand Navy frigates deployed in support of Operation Enduring Freedom maritime security operations received refuelling assistance from the Japanese Maritime Self Defence Force.

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Multilateral Linkages

In the multilateral arena New Zealand and Japan share similar views across a spectrum ofglobal issues.   Theseinclude:

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Visits

Ministerial Visits from New Zealand

2010

2009

2008

2007

2006

 

 

Imperial Family and Ministerial Visits from Japan to New Zealand

2009

2004

2003

2002

2002

1999

1998

1997

Prime Minister’s Fellow Visits to New Zealand

2010

2009

2006

2004

2002

2000

1999

1998

1997

1996

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Representation

To support the work of the New Zealand Embassy in Tokyo honorary New Zealand representatives have been appointed in Sendai, Nagoya, and Osaka.

Travel advice

The "Travelling Overseas" section of the Ministry's website (www.mfat.govt.nz/travel/reports.shtml) has comprehensive travel information including advice on the safety of travel to various countries.   Enquiries may be directed to Consular Division at the following numbers:  Phone:  494-8500;  Fax:  494 8506.

(Please note that visitors to the disputed Southern Kurile Islands may subsequently experience difficulty entering Japan.)

The Safetravel website provides a travel advisory for travellers to Japan [external link].

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Page last updated: Monday, 23 August 2010 12:56 NZST