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Japan

Japan overview

Relations with New Zealand

Japan overview

Key facts

General


Official Name Japan
Land Area 377,923 sq km
Population 127.6 million (2009 ), Population growth rate: -0.2% (2010 est)
Capital City Tokyo
Religion The majority of the population observe both Shinto and Buddhism
Language Japanese
Currency Yen (¥)
Exchange Rate US$1 = ¥76.41 (as at 27 September 2011), NZ$1 = ¥59.50 (as at 27 September 2011)

Political


Political system Representative democracy
National government Coalition between ruling Democratic Party of Japan and People’s New Party
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 due Lower House: by end August 2013, Upper House: July 2013
Head of State Emperor Akihito (since 7 January 1989)
Head of Government Prime Minister Yoshihiko Noda
Selected Ministers
  • Foreign Affairs: Koichiro Genba
  • Finance: Jun Azumi
  • Education, Culture, Sports, Science and Technology: Masaharu Nakagawa
  • Agriculture, Forestry and Fisheries: Michihiko Kano
  • Economy, Trade and Industry: Yukio Edano
  • Defence: Yasuo Ichikawa
Main political parties and leaders
  • Democratic Party of Japan: Yoshihiko Noda
  • 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 (2011 estimates)


GDP (PPP) US$ 4.309 trillion
GDP per capita US$ 42,820 (IMF estimate)
Real GDP growth 3.9%
Exports US$ 767 billion
Imports US$ 691 billion
Main commodity exports Motor vehicles, semiconductors, iron and steel products, automobile components, plastics, engines and turbines, ships and vesseks
Current account US$ 194.7 billion
Inflation 0.0%

New Zealand Trade with Japan (year ending Dec. 2010)


Exports to Japan (FOB) NZ$3.4 billion    (7.76% of total exports)
Main Exports to Japan Aluminium, dairy products (primarily cheese and casein), forest products, meat, seafood and vegetables, albumins (starch, glue etc)
Imports from Japan (CIF) NZ$3.1 billion   (7.33% of total imports)
Main Imports from Japan Vehicles, oil, machinery and appliances, paper, photography/cinematography equipment, iron and steel, medical instruments, plastic

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History

Japan has been a centralised state since the fourth century. For much of its history the country was ruled by a Shogunate, or military government, in the name of the Emperor. In 1630 the Tokugawa Shogunate closed Japan to all foreigners. The United States (US) sent Commodore Matthew Perry 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. Japan continued to prosper in the 1970s and 1980s, until the “bubble economy”, characterised by overvalued asset prices, deflated in 1990.

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Political situation

After the second DPJ Prime Minister Naoto Kan resigned in August 2011, Yoshihiko Nodaan was appointed Prime Minister.

The present political setting is complicated. The DPJ lost one of its minor party coalition partners, the Social Democratic Party (SDP), in May 2010 and then lost control of the Upper House at elections in July 2010. As the DPJ and its remaining coalition partner, the People’s New Party (PNP), lack a two thirds majority in the Lower House, the DPJ Government requires the support of other parties in order to pass legislation, other than the budget or international treaties. The next elections are due in 2013, but could be called sooner. Mr Noda is trying to overcome internal divisions within the DPJ coupled with a fragile coalition in the Upper House in order to bring about his government’s policy agenda, which includes tax and welfare reform as well as trade liberalisation.

On 11 March 2011, a 9.0-magnitude earthquake and an ensuing tsunami struck northern Honshu leading to significant loss of life, displacing large numbers of people and causing major damage to Fukushima nuclear power facilities. The disaster has been a real test of leadership for the DPJ administration and has put its agenda on hold as it focuses on disaster management.

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Economic situation

Japan was overtaken by China in 2010 for second place in the world in terms of GDP (a position Japan had held since 1968). But with an affluent population of 127 million, Japan continues to boast one of the world’s largest consumer markets.

Before the worldwide economic downturn Japan had emerged from a sustained period of low growth and deflation to a recovery driven by exports - especially to China. The global economic crisis weighed heavily on the Japanese economy due to the collapse of overseas demand and the first half of 2009 saw Japan’s steepest GDP decline since 1974. In 2010 GDP is estimated to have grown around 3%. Japan’s economic success has been largely driven by its export sector, but this sector has suffered from the continued strength of the yen, and could slow as the effects of global stimulus packages wear off.

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 194% of GDP in 2010 (the highest in the developed world), continued concerns about deflation, and the aging and shrinking population remain significant issues for the government. The yen, which had been appreciating since 2007, rose sharply in 2010 and prompted the Bank of Japan to intervene for the first time in six years in the foreign-exchange markets.

The 11 March 2011 earthquake and tsunami caused considerable damage to northern Honshu. While the full economic cost of the disaster is unclear, the first figures released in the months following the disaster indicated a more severe economic impact than had been projected initially. Statistics released by the Cabinet Office in May showed Japan's economy shrank at an annual rate of 3.7% in the first quarter of 2011, continuing a trend of negative growth

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Foreign relations

Over the past decade, key foreign policy issues 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 2009 figures, although this amount is falling in real terms). Japanese ODA plays an important role in many countries, including in the Pacific.

In Prime Minister Noda ’s first policy speech at the opening of the 178th Diet session on 13 September 2011, he stated that the Japan-US alliance remains the "cornerstone" of Japan's foreign policy and national security. This relationship was reconfirmed by "Operation Tomodachi (Friendship)" after the triple disaster in March 2011. A disagreement over the relocation of the US air base in Futenma, Okinawa has been a preoccupation in the relationship with the US, but a review of the Special Measures Agreement, under which Japan helps fund the presence of US forces in Japan, was successfully agreed in January 2011.

Japan’s relationships with China and the ROK have been affected by historical issues relating to Japan’s colonial and wartime legacy and territorial disputes. Relations with China significantly deteriorated in September 2010 due to territorial issues involving the Senkaku Islands. Both relationships are, however, fundamentally important to Japan and Japan’s government 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. Japan does not have formal diplomatic relations with the Democratic People’s Republic of Korea (DPRK) and has expressed concerns about its nuclear and missile programmes and its abduction of Japanese citizens.

Other priority relationships for Japan include relations with the ASEAN members, and with neighbouring Russia. A long-standing territorial dispute over the Russian-held “Northern Territories” off Hokkaido is an irritant in Japan’s relationship with Russia and flared up again at the end of 2010. 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 has also played an active role in the development of mechanisms for East Asian regional dialogue, including the ASEAN Regional Forum (ARF), ASEAN+3 (Japan, China, and Korea) and the East Asia Summit (EAS). Japan has led the Closer Economic Partnership in East Asia (CEPEA) initiative, which, if realised, would cover 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 New Zealand. 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 New Zealand's longest and most important.

There are regular high-level contacts between New Zealand and Japan. In October 2009, Prime Minister John Key made an official visit to Japan during which he and the then Prime Minister Yukio Hatoyama issued a Joint Statement committing to bring new vigour and vision to the bilateral relationship. Prime Minister Key visited again in November 2010 for APEC in Yokohama and met with the the Prime Minister Naoto Kan. Ministerial visits to Japan are frequent. New Zealand’s Prime Minister’s fellowship programme for Japanese Dietmembers complements exchanges between the Japanese and New Zealand parliaments, both of which have Japan/New Zealand Parliamentary Friendship Groups.

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

New Zealand is represented in Japan by an Embassy as well as New Zealand Trade and Enterprise and Tourism New Zealand offices in Tokyo. New Zealand has honorary consuls in Fukuoka, Nagoya, Osaka and Sapporo.

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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 New Zealand supplying industrial inputs and agricultural products, and Japan exporting finished industrial goods and machinery. Japan is New Zealand’s fourth largest trading partner (after Australia, the United States and China). In 2010, New Zealand exports to Japan totalled NZ$3.4 billion and imports from Japan were valued at NZ$3.1 billion.

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. According to Statistics New Zealand total Japanese investment in New Zealand at 31 March 2010 totalled NZ$6.2 billion and New Zealand investment in Japan was NZ$3.5 billion. (This includes direct, portfolio and other investments.)

The Japan New Zealand Partnership was established in 2008 as a high-level non-governmental ("Track Two") forum to examine ways in which to reinvigorate and strengthen the bilateral and economic relationship. The Partnership Forum met for the third time in Tokyo in July 2011. At officials' level, a Japan/NZ Officials Group process was established in 2009. New Zealand has welcomed the Japanese government's interest in joining the Trans-Pacific Partnership Agreement negotiations.

The Japan New Zealand Business Council (JNZBC) has been supporting the bilateral trade and economic relationship since its inception in 1974 by providing a forum for the exchange of views between business leaders from both countries on a regular basis.

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Cultural and people-to-people linkages

The bilateral relationship is underpinned by substantial people-to-people exchanges. Around fifty New Zealand cities and towns have active sister city relationships with Japan. There are almost as many New Zealand/Japan friendship societies. In recent years a wide variety of other contacts have been developed, including student, performing and visual arts, and sports exchanges.

Exchange programmes include:

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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 (after China and Korea) with New Zealand being a popular destination for many Japanese high school and tertiary students and people wishing to improve their English language abilities.

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Science and technology

Japan is one of New Zealand’s priority science partners. This is reflected in a Science and Technology Cooperation Agreement signed in October 2009 and the establishment of a Japan-New Zealand Science Commission. Science links have strengthened over past years with the development of joint research projects, scientist exchange programmes and information-sharing. In New Zealand, a science and technology coordinator for Japan has been 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, New Zealand Defence Force participation in multilateral seminars hosted by Japan, and sharing of expertise in areas of mutual interest such as peacekeeping.

New Zealand 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 in 2008-2009.

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Multilateral linkages

In the multilateral arena New Zealand and Japan share similar views across a spectrum of global issues. These include:

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Visits

Ministerial visits from New Zealand to Japan


2011
Hon Tim Groser Minister of Trade July
Hon Murray McCully Minister of Foreign Affairs May
Hon Nick Smith Minister of Environment April

2010
Hon Phil Heatley Minister of Fisheries and Aquaculture November
Rt Hon John Key Prime Minister November
Hon Murray McCully Minister of Foreign Affairs November
Hon Tim Groser Minister of Trade November
Hon Dr Wayne Mapp Minister of Defence October
Hon Bill English Deputy Prime Minister, Minister of Finance October
Hon David Carter Minister of Agriculture October
Hon Pansy Wong Minister of Women’s Affairs September
Hon Pansy Wong Associate Minister of Energy June
Hon Steven Joyce Minister of Transport March
Hon Tim Groser Minister of Trade

February

2009
Hon John Key Prime Minister October
Hon Murray McCully Minister of Tourism October
Hon Bill English Minister of Foreign Affairs, Minister for Sport and Recreation, Minister of Finance September
Hon Murray McCully Minister of Foreign Affairs Minister for Sport and Recreation May

2008
Hon David Cunliffe Minister of Health, Minister of Information and Communications Technology June
Hon Phil Goff Minister of Trade, Minister of Defence, Minister of Disarmament and Arms Control May
Rt Hon Helen Clark Prime Minister May

Imperial Family and Ministerial visits from Japan to New Zealand


2009 Mr Hirofumi Nakasone Minister for Foreign Affairs
2004 Mr Daizo Nozawa Minister of Justice
2003 Mr Nobuteru Ishihara Minister of State for Administrative and Regulatory Reform
2002 Crown Prince Naruhito and Crown Princess Masako
2002 Mr Junichiro Koizumi Prime Minister

Prime Minister’s Fellow visits to New Zealand


2011 Mr Taketane Kiuchi Hose of Representatives, DPJ
2010 Mrs Hiroe Makiyama House of Councillors, DPJ
2009 Mr Keiichiro Asao House of Councillors, DPJ
2006 Mr Isamu Ueda House of Representatives, New Komeito Party
2004 Mr Taro Kono House of Representatives, LDP
2002 Ms Seiko Noda House of Representatives, LDP
2000 Mr Nobuteru Ishihara House of Representatives, LDP
1999 Ms Yuriko Koike House of Representatives, LDP
1998 Ms Makiko Tanaka House of Representatives, LDP
1997 Mr Yasuhisa Shiozaki House of Representatives, LDP
1996 Mr Hiroshi Nakata House of Representatives, NFP
Mr Hiroshi Yamada House of Representatives, NFP
Mr Hiroyuki Nagahama House of Representatives, NFP

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Representation

New Zealand Embassy is represented in Japan by:

Japan is represented in New Zealand by:

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Travel advice

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

Enquiries may be directed to Consular Division at the following numbers:
Tel: +64 4 439 8000
Fax: +64 4 439 8532

[Please note that visitors to the disputed Northern Territories (Southern Kurile Islands) controlled by Russia may experience difficulty entering Japan.]

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Page last updated: Wednesday, 28 September 2011 13:16 NZDT