Bilateral Trade between Japan and Venezuela has grown sustainably from 2003, reaching 1 billion USD by year 2005; wherein, 302.3 million USD represents exports to Japan and 728.7 million USD represent imports from Japan. Hence, creating a deficit of 426,5 million USD for Venezuela.
Trade Balance Venezuela-Japan
Source: Venezuelan Foreign Trade Bank (Bancoex) / Japan External Trade Organization - JETRO
| | Total Export |
| Total Import |
| Commercial Exchange |
| Balance | 1997 | 256,36 | | 655,10 | | 911,46 | | -398,73 | 1998
| 199,26 | | 633,16 | | 832,43 | | -433,90 | 1999 | 233,09 | | 477,15 | | 710,24 | | -244,06 | 2000 | 255,98 | | 567,21 | | 823,20 | | -311,23 | 2001 | 135,21 | | 749,15 | | 884,37 | | -613,94 | 2002 | 38,78 | | 407,88 | | 446,66 | | -369,09 | 2003* | 187,36 | | 154,31 | | 341,68 | | 33,05 | 2004* | 235,39 | | 442,04 | | 677,43 | | -206,64 | 2005* | 302,201 | | 728,726 | | 1.030,92 | | -426,52 | Trade Balance with Japan has not only a financial deficit but also regarding the value added of the products subject to trade. As shown in the tables below from the top 20 products, Venezuela exports mainly raw materials while importing manufactured goods. Trade Balance Venezuela – Japan (Source: JETRO) Top 20 Imported products 2003 / 2005 Products Products | 2003 | 2004 | 2005 | % | Gasoline Engines for vehicles from 1500cc to 3000cc | 21,679,759 | 76,110,357 | 130,681,830 | 16.8 | Gasoline Engines for vehicles from 1000 to 1500cc | 32,498,247 | 81,333,342 | 110,590,198 | 14.2 | Gasoline Engines for vehicles over 3000cc | 12,503,617 | 45,369,175 | 101,599,417 | 13.1 | Diesel engines (5T.<G. V. W. <= 20T) | 10,517,620 | 48,219,712 | 83,128,425 | 10.7 | Mechanized equipment for security and signaling | 0 | 0 | 22,337,478 | 2.9 | Outboard Revolving Marine Motor, | 1,568,598 | 11,158,435 | 17,254,210 | 2.2 | Diesel engines for vehicles with 2500cc | 354,395 | 4,132,497 | 14,221,661 | 1.8 | Other parts for vehicles engines | 3,205,970 | 6,620,866 | 12,414,680 | 1.6 | Gasoline Motors (G. V. W. <= 5T) | 3,262,526 | 9,804,732 | 11,544,261 | 1.5 | Other liquids for purifying machines and filters | 225,694 | 6,391,885 | 11,456,136 | 1.5 | Chassis with engine included | 4,341,773 | 7,724,359 | 11,267,044 | 1.5 | Gear boxes | 4,243,387 | 16,730,547 | 10,505,070 | 1.4 | Covered pipes for petroleum and gas drills | 2,429,878 | 6,747,345 | 9,808,055 | 1.3 | Other auto parts and accessories | 3,206,068 | 6,267,823 | 9,735,390 | 1.3 | Other gasoline engine parts | 2,584,432 | 6,832,471 | 9,357,157 | 1.2 | New rims and tires for vehicles | 1,273,389 | 3,224,721 | 9,215,631 | 1.2 | Self powered Trucks , excluding electric ones | 874,090 | 6,090,455 | 8,997,906 | 1.2 | Tansport Vehicles for more than 10 persons | 0 | 2,653,551 | 7,725,679 | 1 | Other transport vehicles for more than 10 persons | 1,322,070 | 4,462,653 | 6,604,914 | 0.9 | Diesel Engines for marine propulsion | 342,479 | 35,825 | 5,797,168 | 0.7 |
Imports from Japan are mainly within the automotive sector, motorcycles, electronic devices, electrodes and brushes, chassis, vehicles parts and accessories, sound reproduction devices, video and images devices, among others.
About 57% of Imports from Japan are Gasoline Engines and Diesel but in general the automotive sector represents 80% of total Imports from Japan.
Trade Balance Venezuela - Japan
Top 20 Exported Products 2003 / 2005
Fuente: Japan External Trade Organization - JETRO Products | 2003 | 2004 | 2005 | % | Aluminum | 122,296,684 | 160,341,270 | 185,439,481 | 61.4 | Asphalt | 32,730,025 | 35,146,512 | 53,441,659 | 17.7 | Iron ore | 20,863,512 | 18,595,563 | 41,672,400 | 13.8 | Cacao grain, roasted, raw, etc | 7,376,369 | 7,887,031 | 10,247,247 | 3.4 | Artificial aluminum Oxido | 9,626 | 2,209,565 | 2,158,348 | 0.7 | Aluminum alloys | 604,854 | 4,882,529 | 1,472,778 | 0.5 | Nonagglomerate anthracite | 0 | 385,996 | 1,396,840 | 0.5 | Light oils | 0 | 0 | 1,388,746 | 0.5 | Other engine spare parts | 543,730 | 1,222,622 | 1,153,083 | 0.4 | Albumen (as dry eggs) | 710,764 | 1,373,294 | 720,862 | 0.2 | Frozen sardines | 0 | 542,545 | 598,126 | 0.2 | Manganese, iron | 537,518 | 421,876 | 446,769 | 0.1 | Copper waste and scrap | 89,841 | 337,418 | 439,109 | 0.1 | Other fish meats except those fillets cut and frozen | 177,931 | 295,036 | 282,821 | 0.1 | Reimported products | 227,348 | 196,677 | 255,108 | 0.1 | Chocolate products | 267,443 | 573,448 | 220,731 | 0.1 | Aquarium fish | 0 | 23,148 | 139,460 | 0 | Rum | 111,699 | 164,631 | 119,467 | 0 | Leather and reptile skins | 286,851 | 160,272 | 103,756 | 0 | Cables sets | 3,725 | 0 | 76,618 | 0 | String musical instruments parts and accesories | 0 | 0 | 61,116 | 0 | According to the above table, the core exports to Japan are non-manufactured products, mainly: aluminum, bitumen and natural asphalts, iron, albumens, copper scrap and waste, laminated products, laminated steel or iron with no alloy, iron products and cacao grains.
Around 62.6% of exports to Japan comprises Aluminum and its products, 15% iron and its products and 17,7% asphalt and/or bitumen. Legal Framework for Commercial Exchange At present there is no Bilateral agreement between Japan and Venezuela in the area of Trade, Economics or Investments Promotion and Protection. Commercial preferences with Venezuela: Generalized System of Tariff preferences (GSP) Japan
The GSP is an independent commercial policy instrument towards development. Its goal is to offer developing countries preferential custom tariffs, making market access easier for their products. The main feature of this kind of system is that tariff preferences are unilateral. This means that the grantor country does not receive the same preferential tariff treatment for its own exports. Moreover, according to the unilaterality concept, criterias determining its adjudication or remotion are determined by the grantor country as well. Other grantor countries are: Australia, Austria, Canada, United States, Finland, Japan, Norway, Sweden, Switzerland, Bulgaria, France, Poland, Holland, Luxembourg, Denmark, Spain, Ireland, Italy, Czech Republic, United Kingdom, Greece, Slovakia, Germany, Portugal, Republic of Bulgaria, Belarus, Russian Federation and New Zealand.
The Framework for GSP Japan started on August 1th 1971, authorized by the Law of Temporary Tariff Measures in order to grant preferences for an initial period of 10 years. The authorization to grant GSP has been renewed three times already: In 1981 for 10 years, in 1991 with validity until March 31, 2001 and again until March 31 2011. This framework grants special entry with tariff exemption for 226 agricultural and fishing products (with 9 digits in the Harmonized System) and all manufactured products, except 105 numbered items, which are not granted with any preference (petroleum, some textiles, some varieties of wood, some leather and shoes), from 149 developing countries and 15 territories designates as beneficiaries. Therein Japan grants unilateral preferential access to its market to those products from countries that request preferential treatment. Forty two (42) countries, considered as less advanced (LAC) have rights for preferential tariffs. These countries are chosen by the Japanese Government among those LAC designated by the United Nations (This preference has been in effect since April 1st 1980). Items covered by this program are selected with consideration to the effect of the GSP over national industries as well as budgetary reasons. As for Termporary Tariff Mesurements, The Government (Finance Ministry, among others) is fully authorized to designate, retire, suspend or limit which countries and products are under the benefits of GSP treatment. |
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