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Japan

Relations with New Zealand

Japan Overview

 

Relations with New Zealand

Overview

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

New Zealand and Japan share similar views across the spectrum of global issues, based on the values of natural justice, democracy, respect for international law and the United Nations (UN), concern for the environment and determination to promote human rights.  We also cooperate in Asia-Pacific regional organisations such as APEC and the East Asia Summit, and at the UN.

Japan is the world’s second largest economy, accounting for almost 10 percent of global GDP.  Japan is New Zealand's third largest export destination and fourth largest trading partner overall.  Merchandise exports totalled NZ$3.6 billion in 2008.  As a supplier of high quality coal, aluminium and agricultural products, New Zealand business engagement is strategically important for Japan.

The people-to-people links between New Zealand and Japan are broad, deep and well established.  45 New Zealand cities and towns have active sister city relations with Japan.  There is also a wide range of links between New Zealand and Japanese tertiary institutions.  Japanese is the third most commonly taught language after English and French in New Zealand's secondary schools. New Zealand and Japan take a different approach on the sensitive issues of the conservation of whales, some aspects of fisheries management, and the transport of nuclear materials.

New Zealand has been working with Japan to reinvigorate the relationship in recent years. Former Prime Ministers Clark and Fukuda met in May 2008 as part of that process. They noted that Japan and New Zealand are natural partners in the Asia-Pacific region and reaffirmed both countries' commitment to strengthening bilateral cooperation. More recently Japan and New Zealand have agreed to begin a new "Officials Group" process to examine options to further develop the bilateral trade and economic relationship.

New Zealand is represented in Japan by an embassy in Tokyo and New Zealand Trade and Enterprise and Tourism New Zealand offices in both Tokyo and Osaka. New Zealand also has honorary representatives in Sendai, Nagoya, Fukuoka, Osaka and Sapporo.

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Multilateral Linkages

In the multilateral arena, particularly at the UN, New Zealand and Japan share similar views across the spectrum of global issues, including the following.

Security:  We are both are members of Operation Enduring Freedom.  We have both contributed to the security of Timor-Leste.  We have similar views on counter-terrorism.  Both countries strongly support UN-mandated peacekeeping operations and the systemic importance of UN mandates.

Environment:  Japan and New Zealand have a close dialogue on climate change and support the Kyoto Protocol. We agree on the need to establish an effective international climate change framework in which all major economies meaningfully participate.  We have common interests in most aspects of the biodiversity agenda and similar views on international environmental governance.

Human rights: New Zealand and Japan are close dialogue partners at the UN in New York and Geneva, including in the areas of women’s rights, rights of the disabled, and the Human Rights Council.

Disarmament: New Zealand and Japan share an interest in keeping Iran engaged in a multilateral (IAEA) verification process.  Both countries favour the abolition of chemical and biological weapons, and the entry into force of the comprehensive (nuclear) test ban treaty.  New Zealand cooperates with Japan in the G8 Global Partnership Against Weapons of Mass Destruction.

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Defence

New Zealand’s defence and security relationship with Japan has grown steadily in recent years, reflecting our common security concerns and interests.  Our 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 have received refuelling assistance from the Japanese Maritime Self Defence Forces.

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Cultural Exchanges and People-to-People Linkages

The bilateral relationship is strengthened by substantial people-to-people exchanges.  45 New Zealand cities and towns have active sister city relationships with Japan.  There are also 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:

There have also been frequent high-level cultural exchanges with Japan in recent years. New Zealand took part in the Aichi World Expo in 2005.  Also in 2005, former Prime Minister Helen Clark gifted a sacred white horse to the Toshogu Shrine in Nikko (Clark visited the Shrine again in May 2008). In 2006 former Disarmament Minister Phil Goff unveiled a sculpture “Te Korowai Rangimarie – Cloak of Peace” in the Nagasaki Peace Park.  In November 2007 New Zealand held a festival in Tokyo to showcase contemporary New Zealand culture and lifestyle to the Japanese public.

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Education

There is a wide range of links between New Zealand and Japanese tertiary institutions.  New Zealand is a popular destination for many Japanese tertiary students and people wishing to improve their English language abilities.  Japan is New Zealand's third largest source of international students after China and the Republic of Korea.

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Science and Technology

Japan is one of New Zealand’s priority science partners.  Science links between New Zealand and Japan have strengthened over the past few years, with the development of joint research projects and information-sharing arrangements.  In New Zealand, a science and technology coordinator for Japan was appointed to facilitate science and technology collaborative links between New Zealand and Japan.

In 2005 the Ministry of Research, Science and Technology signed a MOU with the Japan Society for the Promotion of Science.  The arrangement provides for enhanced cooperation in areas such as science workshops, collaborative research projects, exchange of senior scientists & post doctorate fellows and cooperation between Centres of Research Excellence.  In April 2009 Japan and New Zealand agreed to negotiate a science and technology cooperation agreement.

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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 highly complementary, reflecting the natural advantages of each country.  Japan is New Zealand’s fourth largest trading partner (after Australia, the United States and China).  In 2008 New Zealand exports to Japan totalled NZ$3.6 billion.  Imports from Japan were valued at NZ$4.0 billion over the same period. 

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.  A sizable proportion of New Zealand’s services exports to Japan are related to education or travel.

In 2008 the total stock of investment from Japan in New Zealand was valued at nearly NZ$9.4 billion, of which just oever NZ$2 billion was Foreign Direct Investment.  Japanese investment in New Zealand reflects the structure of trading between the two countries: much of it is to secure supply (e.g. forestry, fisheries, food and beverage and aluminium).  Investment also covers companies distributing goods such as automobiles and consumer electronics and the provision of services such as tourism.  In recent years Japanese investment has grown in other areas such as education, information technology, and bio-tech and energy.

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Japan Overview

Key Facts

Geography/Demographics

Land Area - 374,744 sq km - Population - 127 million (2009 est.) - Capital City - Tokyo - Religion - 84% observe both Shinto and Buddhism

Political

Political system Representative democracy - National government Coalition between ruling Liberal Democratic Party (292 seats) and New Komeito (31 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 (House of Representatives): September 2005; Upper House (House of Councillors): July 2007 - Next election due Lower House: by September 2009; Upper House: by July 2010 - Head of State Emperor Akihito (since 7 January 1989) - Head of Government Prime Minister Taro Aso (since September 2008) – Key Ministers Foreign Affairs: Hirofumi Nakasone; Finance: Kaoru Yosano; Education, Culture, Sports, Science and Technology: Ryu Shionoya; Agriculture, Forestry and Fisheries: Shigeru Ishiba; Economy, Trade and Industry: Toshihiro Nikai; Defence: Yasukazu Hamada - Main political parties (and leaders) Liberal Democratic Party: Taro Aso; Democratic Party of Japan: Yukio Hatoyama; Japan Communist Party: Kazuo Shii; New Komeito Party: Takenori Kanzaki; Social Democratic Party: Mizuho Fukushima; The Peoples’ New Party: Tamisuku Watanuki; New Nippon Party: Yasuo Tanaka.

Economic

GDP (PPP) - US$4,348 billion (2008 est.) - GDP per capita - US$34,200 (2008 est. PPP) - Real GDP growth - 0.4% (2008 est.) - Exports (FOB) - US$776.8 billion (2008 est.) - Imports (FOB) - US$696.2 billion (2008 est.) - Main exports - transport equipment, motor vehicles, electrical equipment, chemicals, oils (not crude), iron & steel - Current account - US$187.8 billion (2008 est.) - Inflation - 1.8% (2008 est.)

New Zealand Trade

NZ Exports (FOB) - NZ$3.4 billion (year to June 2008) - Main Goods Exports - Aluminium, forest products, dairy products, kiwifruit, meat, seafood, vegetables - NZ Services Exports - Tourism (est. NZ$420 million p.a.), education (est. NZ$214 million p.a.), other (est. NZ$30 million p.a.) - NZ Imports (CIF) - NZ$4.0 billion (year to June 2008) - Main Imports - vehicles, machinery and appliances, computers, chemicals, iron and steel, telephone and broadcasting equipment.

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History

Japan has been a centralised state since the fourth century, although the power of the Emperor has waxed and waned depending on the level of political conflict between leading clans.  For much of its history the country has been ruled by a Shogunate, or military government.  The Kamakura Shogunate repulsed the Mongol armies of Kublai Khan in 1274 and 1281, and the Tokugawa Shogunate moved the administrative capital from Kyoto to Edo (Tokyo) in 1603. 

Japan first came into contact with Europeans in 1543, but in 1630 the Tokugawa Shogunate closed Japan to all foreigners.  Nagasaki was to be Japan’s main gateway to the rest of the world for the next two centuries, until the United States 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.  The Meiji era began when 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”.

Japan’s rapid rise led to war with China in 1894-95, Russia in 1904-05 and the annexation of Korea in 1910.  Japan entered World War One on the side of the Entente Cordiale.  The Great Depression led to acute economic problems and military domination.  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 an oil blockade, Japan launched 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.  After Japan’s surrender allied occupation introduced far-reaching political, social and economic reforms before Japan regained full independence in 1952.  By 1960, economic growth began to gather pace as a result of policies instituted by a strong cooperative arrangement between the ruling Liberal Democratic Party (LDP), the bureaucracy and business.  Japan continued to prosper in the 1970s and 1980s, until the “bubble economy”, highlighted by overvalued assets, deflated in 1990.

The LDP has dominated the Japanese political system in the post-war era.  In 1993 the LDP lost its majority in the Lower House for the first time, although it regained power the following year with majorities in both Houses.  In July 2007 the Opposition won control of the Upper House for the first time.

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Political Situation

Taro Aso was confirmed as Japan’s Prime Minister on 24 September 2008.  He is the third Prime Minister in as many years.

Aso became Prime Minister with significant experience in business and politics, having held several Ministerial portfolios (Finance, Internal Affairs, Foreign Affairs) and senior party positions.  He served as the LDP Secretary General before becoming Prime Minister.  He is a fiscal conservative and has a relatively hawkish reputation on security issues, although his position has softened in the past two or three years. 

The Japanese political situation remains confused, with the Liberal Democratic Party-led ruling coalition holding the Diet's Lower House and the Democratic Party of Japan-led opposition in control of the Upper House. This has affected the passage of legislation through the Diet.

In May 2009 Ichiro Ozawa resigned as Leader of the Democratic Party of Japan. He has been replaced by Yukio Hatoyama, the grandson of a former Prime Minister and the son of a former Foreign Minister. Hatoyama also served as Leader of the Democratic Party of Japan from 1999 to 2002.

Lower House elections must take place by October 2009 at the latest.


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Economic Situation

Japan is the world’s second largest economy. Its GDP accounts for almost 10 percent of global GDP. Of the economies in North Asia, Japan ranks number one in industrial infrastructure, IT environment, skilled human resources, and university and research facilities and financing.

The global financial crisis is hitting Japan hard.  With its economy dependent on exports (e.g. vehicles and electronic appliances), Japan is feeling the effects of weakening demand for its products.  The export sector is also suffering from the strength of the strong yen, which has been pushed up because it is seen as a safe curency in the current global economic climate.  In January 2009 production fell by 10 percent, and exports by over 45 percent, as major exporters announced further production cutbacks.

Recent figures indicate Japan's GDP is declining at over 12 percent per annum, Japan's worst decline since 1974.  Domestic demand is also dropping; household spending was down 5.9 percent in January 2009 compared to the same time in 2008.  Unemployment has been rising, although the official unemployment rate unexpectedly dropped from 4.4 percent in December 2008 to 4.1 percent in January 2009.

Japan's room for manoeuvre on the fiscal and monetary front is limited.  The Government has produced a series of stimulus measures to support employment and corporate financing, aimed in particular at small-to-medium enterprises, with new spending amounting to some two percent of GDP.  With national debt at 170 percent of GDP, the Government has little room to expand borrowing and is digging into fiscal reserves.  The Bank of Japan has dropped interest rates to just above zero (0.1 percent), the limit of traditional monetary policy responses.

Before the current recession, Japan’s period of low growth over the 1990s and the early years of this decade was considered to be coming to and end in a recovery driven by exports (particularly to China) and industrial production.  Growth in company profits and business fixed investment had followed and demand for labour was increasing (although wage growth and personal consumption were failing to keep pace).

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Foreign Relations

Over the past decade, key foreign policy activities for Japan have been 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 donor of official development assistance (ODA) (the fifth largest OECD net donor based on 2008 figures).  Japanese ODA plays a very important role in many countries, including in the Pacific.

Relations with the United States, including the bilateral security alliance, remain the fundamental pillar of Japan’s foreign and defence policies.  Significant developments in recent years include the unprecedented decision to deploy Japan’s Maritime Self Defence Forces to the Indian Ocean and dispatching non-combat Self Defence Forces personnel to Iraq to assist with reconstruction efforts.  This was the first time in its post-war history that Japan had jointly dispatched its land, sea and air forces overseas.  The United States and Japan are committed to strengthening the alliance.  Part of this process is the realignment of the US military presence in Japan.  Japan was the first stop on US Secretary of State Hillary Clinton's Asia tour in mid-February 2009 - her first foreign trip as Secretary of State.

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. Prime Minister Aso and his predecessors, have maintained positive and forward-looking momentum in the relationships with China and the ROK through reciprocal visits. These visits have provided a platform for closer links in a range of areas including trade and economics, the environment and people-to-people exchanges. In December 2008 Japan hosted a trilateral leader's summit with China and South Korea; this was the first time the three leaders had met independently rather than on the sidelines of a larger meeting.

Relations with South East Asian countries are also foreign policy priorities for Japan.  A long-standing territorial dispute over Russian-held islands off Hokkaido is an irritant in Japan’s relationship with Russia. 

Japan does not have formal diplomatic relations with the Democratic People's Republic of Korea (DPRK/North Korea). The DPRK's nuclear and ballistic missile programmes and the lack of progress in resolving the issue of the DPRK's abductions of Japanese nationals in the 1970s and 80s remain impediments to the normalisation of relations. Japan is a member of the Six Party Talks (6PT) process aimed at denuclearising the Korean peninsula.

Japan supports multilateral initiatives such as APEC for enhanced dialogue and cooperation among the countries of the Asia-Pacific region. Japan will be the APEC Host country in 2010. Japan 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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Visits

Ministerial Visits from New Zealand

2009

2008

2007

2006

2005

2004

2003

2002

2001

 

Imperial Family and Ministerial Visits from Japan to New Zealand

2004

2003

2002

2002

1999

1998

1997

Prime Minister’s Fellow Visits to New Zealand

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.

Embassy of Japan Wellington

Travel advice

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

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Page last updated: Friday, 10 July 2009 16:59 NZST