Business | Economy
GCC trade with Japan up 43%
Trade between the Gulf Cooperation Council (GCC) and Japan grew by 43 per cent in 2008, to $172 billion (Dh631 billion), according to latest figures from the Dubai office of the Japan External Trade Organisation (Jetro).
- By Rachna Uppal, Staff Reporter
- Published: 22:52 July 1, 2009
Dubai: Trade between the Gulf Cooperation Council (GCC) and Japan grew by 43 per cent in 2008, to $172 billion (Dh631 billion), according to latest figures from the Dubai office of the Japan External Trade Organisation (Jetro).
The six-nation GCC's exports to Japan jumped 46.3 per cent last year, to $144.2 billion, while imports from Japan increased 28.4 per cent to $27.6 billion.
The UAE is the largest export market for Japan among the GCC states, with a share of 39.2 per cent of the GCC market in 2008.
Japan's exports to the UAE grew by 34.0 per cent, with exports of transport equipment soaring 40.6 per cent to $5.2 billion.
Commodities, primarily crude oil, were the main GCC export product to Japan, meeting 75 per cent of the Asian nation's crude oil needs.
The value of crude oil imports by Japan jumped by nearly 50 per cent to $114.9 billion compared to $76.8 billion in 2007.
Japan imported 1,125.7 million barrels of crude oil from the GCC in 2008, at an average price of $102.04 per barrel.
Imports of light oil and refined products increased by 30.3 per cent to $7.4 billion.
Imports of petroleum gases and other gaseous hydrocarbons increased by a similar proportion to $20.6 billion in 2008.
The only other major import from the GCC was semi-finished aluminium, mainly from the UAE and Bahrain, worth about $430 million.
Japanese exports to the GCC were dominated by machinery and equipment which constituted over 80 per cent of exports.
These jumped from $17 billion in 2007 to $22.5 billion in 2008, an increase of 32.8 per cent.
The largest single item among general machinery was mechanical shovels that grew by 93.9 per cent to $586 million, from $302 million the previous year.
Establishing solid bilateral trade relations for the six-member GCC has become an increasing policy priority for regional governments, as the Gulf states become major players in the shifting dynamics of the global economy, and seek to be a key hub for east-west trade.
While trade has flourished through the years, the GCC has yet to sign a free trade agreement with Japan.
In June, the GCC signed a free trade agreement with the European Free Trade Association (Efta).
While the GCC and Singapore managed to sign a free trade agreement in December, negotiations for a similar agreement between the European Union and the GCC broke down over political demands made by the EU.
However, the EU is still the largest trading partner of the GCC.
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