Post on 01-Aug-2018
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“the UnShAKABle U.S.-JApAn AlliAnce iS the cornerStone of peAce, proSperity, And freedom
in the ASiA-pAcific reGion.”
“[The leaders of Japan and the U.S.] remain fully committed to strengthening the economic relationships between their two countries and across the region, based
on rules for free and fair trade. This will include setting high trade and investment standards, reducing market barriers, and enhancing opportunities
for economic and job growth in the Asia-Pacifi c.”—Joint Statement from President Donald J. Trump and Prime Minister Shinzō Abe, February 2017
A Balanced Economic RelationshipThe U.S. and Japan are top economic partners and global leaders who should continue to build this bond into a stronger and more resilient economic alliance. The U.S. is Japan’s 2nd largest trading partner and Japan is the U.S.’s 4th largest trading partner.
“The U.S.-Japan relationship is the most important bilateral relationshipin the world, bar none.”
—Mike Mansfi eld, former senator and American ambassador to Tokyo, September, 1982
Japan Foreign Direct Investment to U.S.
Japan Imports from U.S.
U.S. Jobs Created by Japanese Companies
Japan Eager toContinue Investing
400+ billion dollars in 2015 850,000+ Americansdirectly employed
U.S. exports of goods and services to Japan exceeded
$100 billion in 2016Source: U.S. Bureau of Economic Analysis
Since 2012, more than 50%of Japanese manufacturers
in the U.S. have consistently considered expansion
Source: JETRO
Japan Balances Investment and Trade with its U.S. Partners
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JApAn inVeStS in AmericA
Japan a Leading Investor in the U.S.At $411 billion stock and $31 billion flow, Japanese investment in the U.S. leads all G20 nations.
Japanese FDI Continues to RiseJapan is both one of the largest and one of the fastest growing sources of inbound U.S. foreign direct investment, vastly outpacing other countries.
Source: U.S. Department of Commerce Source: U.S. Department of Commerce
Source: U.S. Bureau of Economic Analysis
Foreign Direct Investmentto the U.S. by Country
(Stock, 2002–2015)
Annual FDI flow to the U.S. has grown steadily, rising by a factor of 5.5
between 2009 and 2015.
Stock FDI also continues to grow, increasing 60% in one recent
five-year span from 2010 to 2015.
Foreign Direct Investment to the U.S. by G20
(Flow, 2015)
Source: OFII
2010 20152009 2015
$31BJapan
Canada
UnitedKingdom Netherlands
Germany
France China
$26B $25B
$22B $21B$18B $5B
Canada
Japan
United Kingdom
$222.1B
$259.1B
$491.6B$414.0B
$568.9B
$341.9B
51%
60%Change
16%
1.0
5.5
2.6
All Countries
Japan
$411B2015
2002
UnitedKingdom
Japan NetherlandsLuxembourg Canada
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Japan Invests in the U.S. from the Ground UpIn 2014, Japan was second only to Canada in opening new U.S. business branches from scratch, involving every aspect of the American job market from building construction to information technology to sales.
High Quality Investment from JapanJapanese investment in the U.S. is focused in critical industries and in research and development. In 2014 Japanese FDI accounted for 57 billion dollars in R&D. Since 1997, direct Japanese R&D spending in the U.S. has increased from two to more than 10 billion dollars, and continues rising.
Source: U.S. Bureau of Economic Analysis
Source: OFII Report, PIIE
19+15+13+13+9+6+4+212014 Insourced R&D Spending by Country Annual R&D spending per employee
Bill
ions
of D
olla
rs (2
014)
1,500
1,000
2,500
3,000
3,500
4,000
4,500
500
2,000
0Japan
2,815
Canada
4,008
United Kingdom
907
Netherlands
Switzerland
Japan
United Kingdom
Germany
France
Ireland
Netherlands
All Other Countries
887
Germany
685
India
366
$10.6B
$7.3B$7.1B
$5.7B
$3.4B
$2.4B
$11.6B
Source: U.S. Bureau of Economic Analysis
$7.9B8,000
6,000
12,000
4,000
10,000
2,000All Other Countries
Japan
19971997
2011
2011
Dol
lars
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Japanese Companies Contribute to American ExportsJapanese-affiliated companies are the largest foreign contributors to U.S. export totals.
Americans Export Millions to Japan in Goods and ServicesEvery state in the U.S. benefits from export business to Japan, with 30 states exporting more than 1 billion dollars to Japanese consumers.
All U.S. StAteS Benefit from trAde with JApAn
Source: U.S. Department of Commerce
Sources: Estimated by The Trade Partnership (Washington, D.C.), AMFA
Japan
United Kingdom
Germany
Korea
France
$ Billion
Cou
ntry
3020 50 60 70 8010 400
73.5
78.7
45.0
28.8
22.7
WASHINGTON
OREGON
CALIFORNIA
NEVADAUTAH
ARIZONA
COLORADO
WYOMING
IDAHO
MONTANA NORTH DAKOTA
SOUTH DAKOTA
NEBRASKA
TEXAS
NEW MEXICO
MINNESOTA
IOWA
WISCONSIN
MICHIGAN
ILLINOIS INDIANAOHIO
KENTUCKY
TENNESSEE
ALABAMA$956M
$1.5B
$2.4B
$3.1B
$4.0B
$1B
$2.9B
$1.7B
$2.5B
$1.6B
$397M
$2.3B
$2.7B
$6.2B
$212M
$3.5B
RHODE ISLAND $149M
VERMONT $220M
NEW HAMPSHIRE $282M
DISTRICT of COLUMBIA $338M
$2.5B $4.2B
$449M
$377M
$1.4B
$893M
$464M
$2.1B
$1.8B
$424M
$1.3B
$1.6B
$357M
$97M
$331M
$233M $1.7B
$1.1B $998M
$20.1B
$8.5B
$1.6B
$259M
$1.1B
$1.4B
$682M
$8.6B LOUISIANA
GEORGIA
FLORIDA
S CAROLINA
N CAROLINA
VIRGINIA
WESTVIRGINA
PENNSYLVANIA
NEWYORK
MAINE
MISSOURI
MISSISSIPPI
ARKANSAS
KANSAS
OKLAHOMA
ALASKA
HAWAI’I
MASSACHUSETTS $1BCONNECTICUT
$3.1BNEW JERSEY
$399MDELAWARE $1.2BMARYLAND
$350 Million or less
$351 Million–$1 Billion
$1.1–$3 Billion
$3.1–$5 Billion
$5.1 Billion and above
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Exports to Japan Support American JobsTrade with Japan creates jobs all across the U.S., generating 30,000+ jobs in five states and 10,000+ jobs in 24 states.
Americans Export Goods to Japan Across All IndustriesTop U.S. exports to Japan include aircrafts and vehicle machinery, medical and chemical products, and agricultural goods.
Source: MIT
9.2%Transportation
1,537
MASSACHUSETTS 22,870RHODE ISLAND 1,184
VERMONT 1,409
NEW HAMPSHIRE 2,039
CONNECTICUT 6,561
NEW JERSEY 18,803
DELAWARE 2,099MARYLAND 8,521DISTRICT of COLUMBIA 2,770
MAINE
500–5,000
5,001–10,000
10,001–15,000
15,001–30,000
30,001 and above
WASHINGTON
OREGON
CALIFORNIA
NEVADA
UTAH
ARIZONA
COLORADO
WYOMING
IDAHO
MONTANA NORTH DAKOTA
SOUTH DAKOTA
NEBRASKA
TEXAS
NEW MEXICO
MINNESOTA
IOWA
WISCONSIN
MICHIGAN
ILLINOIS INDIANAOHIO
KENTUCKY
TENNESSEE
ALABAMA5,626
9,694
14,954
20,089
30,388
6,682
17,578
11,864
16,766
11,160
2,558
15,132
17,244
43,910
14,46028,062
3,421
2,547
8,1114,950
3,693
13,945
11,189
2,943
10,201
13,207
2,845
632
2,690
1,84812,297
6,947
8,981
128,493
52,666
12,017
2,115
8,808
11,345
5,029
46,413 LOUISIANA
GEORGIA
FLORIDA
S CAROLINA
N CAROLINA
VIRGINIA
WESTVIRGINIA
PENNSYLVANIA
NEWYORK
MISSOURI
MISSISSIPPI
ARKANSAS
KANSAS
OKLAHOMA
ALASKA
HAWAI’I
Source: Estimated by The Trade Partnership (Washington, D.C.), AMFA
13%Instruments
3.3%Plastics and Rubbers
6.6%Animal Products
9.9%Vegetable Products
22%Machines
2.0%Paper Goods
1.9%Precious Metals
4.5%Mineral Products
3.1%Metals
3.9%Foodstuffs
17%Chemical Products
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Japanese Businesses Hire Millions in the U.S.In 2014, Japan created jobs in the U.S. both directly and indirectly across all industries.
Japanese Companies Lead All Foreign Nations in U.S. Manufacturing Jobs
Japanese manufacturing employed more U.S. workers than any other foreign employer in 2014.
Source: U.S. Bureau of Economic Analysis
Source: U.S. Department of Commerce
Empl
oym
ent b
y 10
,000
Peo
ple
Empl
oym
ent b
y 10
,000
Peo
ple
60
40
100
120
20
80
0
Direct
839,000Indirect
1,740,000
Employment by Japanese-affiliated Companies
in the U.S.
UnitedKingdom
24.9
Japan
38.3
Germany
31.4
Canada
23.9
France
20.5
Switzerland
19.6
Netherlands
9.8
JApAneSe BUSineSSeS employ AmericAnS
Japan
83.9
UnitedKingdom
109.9
Germany
67.2
Canada
62.1
France
57.4
Netherlands
41.6
Switzerland
46.1
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Japan Leads in American Job CreationJapanese enterprises are leaders in creating U.S. jobs, with over 117,000 new American jobs from 2011–2013 alone.
Japanese Companies Provide Quality U.S. JobsJapanese companies don’t just employ Americans, they offer stable, high-paying jobs.
Source: U.S. Bureau of Economic Analysis
Source: U.S. Bureau of Economic Analysis
United Kingdom
Japan
Germany
France
Canada
Netherlands
United Kingdom
Japan
Canada
Netherlands
Jobs in Thousands6040 100 120 14020 800
65
117
50
30
All Countries Average$79,979
Average Income in Thousands of U.S. Dollars
11
4
$70,744
$76,969
$81,813
$68,107
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Promoting Diversity EmploymentJapanese companies support inclusive and diverse employment initiatives for all.
JApAneSe compAnieS Are Good corporAte citiZenS
Japanese companies value their American employees and their local American communities.
Leaders in corporate social responsibility, Japanese companies frequently establish charitable foundations to empower communities and engage at a local level. From Alabama to Wyoming, Japanese corporations endow cultural events at museums or theaters, provide disaster relief assistance, or donate to hospitals for disease prevention research.Japanese businesses also often develop company service days with designated organizations, sending employees out into the community to volunteer to tutor at elementary schools, provide job training for high schoolers and underemployed adults, cook meals at shelters, and numerous other charitable activities. Japanese companies believe in giving back, and know that engagement with the local community builds valuable ties for both individual and business development.
Community Outreach and Corporate Social Responsibility
YoungPeople
DisabledPersons
Women
ForeignHuman
Resources
SeniorCitizens
Veterans
Empowering Veteransand the Disabled
YouthEducation
Arts andTheater
Hospitals andDisease
Prevention
Ending Hungerand Homelessness
EnvironmentalProtection
and Sustainability
KEIDANREN (Japan Business Federation) is acomprehensive economic organization with a membership comprisedof 1,352 representative companies of Japan, 156 nationwide industrial
associations and 47 regional [prefectural] economic organizations.Our mission as a comprehensive economic organization is to draw upon the
vitality of corporations, individuals and local communities to support corporate activities which contribute to the self-sustaining development of the Japanese
economy and improvement in the quality of life for the Japanese people.
Keidanren1-3-2, OtemachiChiyoda-ku, Tokyo 100-8188http://www.keidanren.or.jp/en/
Keidanren U.S.A.1200 Seventeenth Street, NWWashington, D.C. 20036http://keidanren.us/
america@keidanren.or.jp