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Official Name: Japan
Land Area: 374,744 sq km
Population: 127.8 million (2006)
Capital City: Tokyo
Religion: 84% observe both Shinto and Buddhism
Language: Japanese
Currency: Yen (¥)
Exchange Rate: NZ$1 = ¥80 as at April 2008
Political system: Representative democracy
National government: Coalition between ruling Liberal
Democratic Party (292 seats) and New Komeito
(31 seats)
National legislature: Bicameral Diet- comprising:480 member House of Representatives (lower
house) elected every four years, 242 member House of Councillors (upper house)
elected for six year terms, with one-half elected
every three years
Last election Lower House: September 2005
Upper House: July 2007
Next election due Lower House: by November 2009
Upper House: July 2010
Head of State: Emperor Akihito (since 7 January
1989)
Head of Government: Prime Minister Yasuo Fukuda
Foreign Affairs: Masahiko
Koumura
Finance: Fukushiro Nukaga
Education, Culture, Sports,
Science and Technology: Kisaburo Tokai
Agriculture, Forestry and
Fisheries: Masatoshi
Wakabayashi
Economy, Trade and Industry: Akira Amari
Defence: Shigeru Ishiba
Liberal Democratic Party: Yasuo Fukuda
Democratic Party of Japan: Ichiro Ozawa
Japan Communist Party: Kazuo Shii
New Komeito Party: Takenori Kanzaki
Social Democratic Party: Mizuho Fukushima
The Peoples’ New Party: Tamisuku Watanuki
New Nippon Party: Yasuo Tanaka
GDP: US$ 4,366.6 billion (2006)
GDP per capita: US$ 34,200 (2006)
Real GDP growth: 2.2% (2006)
Exports: US$ 615.1 billion (2006)
Imports: US$ 533.5 billion (2006)
Main exports: Transport equipment - 24%
Electrical equipment: 23%
Non-electrical machinery: 21%
Chemicals: 9%
Iron & steel: 5%
Current account US$ 170.8 billion surplus (2006)
Inflation 0.3% (2006)
Budget balance -4.6% of GDP (2006)
NZ Exports (FOB): NZ$3.4 billion (December 2007)
Main Goods Exports: Aluminium, forest products,
dairy products, kiwifruit, meat, seafood, vegetables.
NZ Services Exports: Tourism (est. NZ$620 million
p.a.), education (est. NZ$200 million p.a.), other
(est. NZ$30 million p.a.)
NZ Imports: (CIF) NZ$3.9 billion (December 2007)
Main Imports: Vehicles, machinery and appliances,
computers, chemicals, iron and steel, telephone
and broadcasting equipment.
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, a shared interest in the stability, growth and development of the Asia/Pacific community, and substantial (for New Zealand) 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 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 Asian regional groupings such as the East Asia Summit and at the UN.
Japan is the world’s second largest economy, accounting for 12 percent of global GDP, more than 60 percent of intra-Asian trade and 70 percent of regional GDP. Japan is our fourth largest trading partner, with exports totalling NZ$3.4 billion in the year to 2007. 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. 47 New Zealand cities and towns have active sister city relations with Japan. There is also a wide range of linkages between New Zealand and Japanese tertiary institutions. At New Zealand’s secondary schools, Japanese is the third most commonly taught language after English and French.
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.top of page
Yasuo Fukuda was confirmed by the Diet as Prime
Minister of Japan on 25 September 2007. He succeeded
Shinzo Abe, who resigned on 12 September.
Abe’s resignation followed the LDP’s
resounding defeat in the Upper House election
on 29 July 2007, in which the opposition led
by the Democratic Party of Japan (DPJ) took control
of the Upper House for the first time since the
LDP came into being in the 1950s. Abe had been
under considerable pressure to resign due to
the election result, concern about the government’s
response to news that pension records had been
lost, corruption scandals involving some of his
past Cabinet ministers, and the opposition’s
efforts to block legislation enabling the extension
of Japan’s refuelling mission in the Indian
Ocean in support of the international campaign
against terrorism. Abe’s Cabinet reshuffle
of 27 August failed to generate a lasting significant
improvement in his low public approval ratings.
Fukuda served as Chief Cabinet Secretary under the Koizumi administration. He has a reputation as an experienced, moderate politician capable of negotiating compromises between disparate positions. To minimise political disruption he made relatively few changes to Abe’s Cabinet. In his inaugural policy speech to the Diet on 1 October he emphasised an approach to policy issues built on dialogue and “politics with warmth”. He has indicated that he will focus on domestic concerns, while maintaining Japan’s alliance with the United States as the cornerstone of Japan’s foreign policy. Fukuda is also expected to take a conciliatory approach to Japan’s relations with its Asian neighbours.
Fukuda has also overseen the passage through the Diet in January 2008 of the Replenishment Support Special Measures Law, to replace the previous Anti-Terrorism Special Measures Law under which Japan had been conducting its refuelling mission in the Indian Ocean. The Opposition-controlled Upper House had voted against the law, but as the LDP has a two-thirds majority in the Lower House it was able to veto the Upper House’s decision. This was the first time the Lower House has exercised its veto power since 1957, thus allowing Japan to continue its refuelling mission.top of page
Japan is the world’s second largest economy, accounting for 12 percent of global GDP, more than 60 percent of intra-Asian trade and 70 percent of regional 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.
Japan’s decade and a half of low growth is considered by many economists to be coming to an end. Between 1990 and 2005, real GDP growth averaged just 1.3% a year. In nominal terms Japan’s GDP level remains lower than in 1997, largely due to deflation. Japan’s current economic expansion, which began in 2002 is Japan’s longest since the Second World War.
The recovery was initially driven by exports (particularly to China) and industrial production. Growth in company profits and business fixed investment followed, and demand for labour has increased. Wage growth and personal consumption have failed to keep pace, however, limiting the scope for robust autonomous growth momentum within the domestic economy. The Consumer Price Index has finally moved into positive territory – albeit only just. Bank lending is also marginally on the increase. This gave the Bank of Japan room to tighten monetary policy by raising its target rate twice to 0.5 percent.
Much of the recovery has been credited to the return to profitability by corporate Japan. Japanese firms have drastically overhauled the lifetime employment system, cut costs (primarily through reductions in worker numbers) and repaid trillions of yen worth of debt. There have also been improvements in corporate governance and accounting systems and concerted efforts to shift up the value chain to cutting-edge IT and other new economy areas. Business confidence has returned and corporate spending is up, particularly by electric and telecommunication companies. top of page
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 the world’s second largest donor of official development assistance (ODA). Japan’s total aid in 2006 amounted to US$11.6 billion. Japanese ODA plays a very important role in many countries, including Pacific Island countries.
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 Force to the Indian Ocean and dispatching non-combat Self Defence Force (SDF) personnel to Iraq to assist with reconstruction efforts. This was the first time in 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’s relationship China and (to a lesser extent) South Korea are affected by historical issues. The Yasukuni Shrine (where 14 Class A war criminals are enshrined with millions of other Japanese war dead) is particularly controversial. Territorial disputes also still tend to mar bilateral relations. Prime Minister Fukuda has indicated that improving Japan’s relations with its Asian neighbours is one of his priorities.
Former Prime Minister Abe chose to visit both China and Korea immediately after becoming Prime Minister in September 2006. Chinese President Hu described the talks as a turning point in China’s relationship with Japan. Prime Minister Fukuda then made an important visit to China in December 2007, and President Hu made a return visit to Japan in May 2008. These visits have helped to improve the tone of the relationship and set the stage for closer cooperation.
Prime Minister Fukuda also attended the inauguration of South Korea’s President Lee in February 2008. This was followed by President Lee’s visit to Japan in April. The two leaders have committed to “future oriented ties”, aiming to move past historical and territorial issues so that the relationship can move forward.
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 to Japan’s relationship with Russia. Japan is also a member of the Six Party Talks (6PT) process aimed at resolving the North Korean nuclear issues.
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 has proposed exploring the merits of an economic arrangement bringing together ASEAN, Japan, China, Korea, India, Australia and New Zealand.
As holder of the 2008 G8 Presidency, Japan will host the G8 Leaders’ Summit at Toyako, Hokkaido in July. Other G8 members are Canada, France, Germany, Russia, United Kingdom and the United States. Japan has indicated four main themes for the Summit: (1) Environment and climate change; (2) Development and Africa; (3) World economy, including food prices; and (4) Political issues, including non-proliferation. top of page
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 community, and substantial (for New Zealand) economic, trade, tourism and people-to-people links. Parliamentary ties have been strengthened, and a New Zealand constituency built up in the Diet through the Prime Minister’s Fellow programme for Japan and reciprocal parliamentary exchanges.
In June 2005 both Prime Ministers agreed to take a “fresh look” at the New Zealand-Japan economic relationship and to strengthen high-level exchanges. New Zealand’s decision to participate in the World Expo in Aichi in 2005 was part of these efforts to heighten engagement with Japan. New Zealand and Japan take a different approach over the sensitive issues of the conservation of whales, some aspects of fisheries management, and the transport of nuclear materials.
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 Fukuoka, Nagoya, Osaka, Sapporo and Sendai.
In the multilateral arena, particularly at the UN, New Zealand and Japan share similar views across the spectrum of global issues. These include:
Japan and New Zealand both contributed to humanitarian and reconstruction assistance in Southern Iraq; both are members of Operation Enduring Freedom; and both contributed to the security of Timor-Leste. Japan and New Zealand also share similar views on counter-terrorism. Both countries strongly support UN-mandated peacekeeping operations and the systemic importance of UN mandates.top of page
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. New Zealand supported Japan’s successful candidature for the committee of the new Human Rights Council.
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.
The bilateral relationship is strengthened by substantial people-to-people exchanges. 47 New Zealand cities and towns have active sister city relations 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.
There have also been a number of high-level cultural
exchanges with Japan in recent years. New Zealand
took part in the Aichi World Expo in 2005. Also
in 2005, Prime Minister Helen Clark gifted a
sacred white horse to the Toshogu Shrine in Nikko.
In 2006 Disarmament Minister Phil Goff unveiled
a sculpture “Te Korowai Rangimarie – Cloak
of Peace” in the Nagasaki Peace Park. In
November 2007 New Zealand ran a festival in Tokyo
to showcase contemporary New Zealand culture and
lifestyle to the Japanese public.
There is a wide range of linkages 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. Around six percent of all Japanese students and researchers that choose to study abroad come to New Zealand.
top of pageJapan is one of New Zealand’s priority science partners. Science links between our countries 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 Japan and New Zealand.
In 2005 the New Zealand Ministry of Research, Science and Technology signed a memorandum of understanding 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 and post doctorate fellows, and cooperation between centres of research excellence.
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 the year to December 2007 New Zealand exports to Japan totalled NZ$3.4 billion and imports from Japan were valued at NZ$3.9 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. A sizable proportion of New Zealand’s services exports to Japan are education or travel related.
In 2005 Japan’s total investments in New Zealand were valued at NZ$5.2 billion, which includes NZ$1.6 billion in 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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To support the work of the Embassy in Tokyo honorary New Zealand representatives have been appointed in Sendai, Nagoya, and Osaka.
The Safetravel website provides a travel advisory for travellers to Japan [external link].
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