JAPAN COUNTRY FACT SHEET PROFILE: A. Population: 123.61 million B. Religions: Shintoism, Buddhism, Christianity 1 percent C. Government: Type: Parliamentary Democracy Head of Government: Prime Minister Kiichi Miyazawa D. Language: Japanese ECONOMY: 1988 1989 1990 A. GNP ($B, Nominal) 2,916 2,890 2,964 B. GNP Growth Rate (real, 1985 base) 6.2 4.7 5.6 C. GNP per capita (in dollars) 23,750 23,448 23,971 D. Gov't spending as a percent of GNP 15.8 15.6 15.4 E. Inflation (CPI, 1985 base, percent) 0.7 2.3 3.1 F. Unemployment (percent) 2.5 2.3 2.1 G. Foreign Exchange Reserves ($B) 97.7 84.9 77.1 H. Average Exchange Rate ($1=) 128.15 137.96 144.79 I. U.S. Economic Assistance 0 0 0 J. Output/hour manufacturing (1985=100) 90.7 92.8 94.6 K. Domestic Demand (percent growth) 7.6 5.9 5.8 L. Household Savings Rate (percent) 14.3 14.1 13.8 TRADE: A. Total Japanese Exports ($M) 265,917 275,175 286,948 B. Total Japanese Imports ($M) 187,354 210,847 234,799 C. Total U.S. Exports (FAS value, $M) 322,426 363,812 393,893 D. Total U.S. Imports (customs val. $M) 440,952 473,211 494,903 E. U.S. Exports to Japan (FAS, $M) 37,725 44,494 48,585 F. U.S. Imports fm Jpn (customs val. $M) 89,519 93,553 89,655 Principal U.S. Exports: automatic data processing machines and office equipment; wood, in the rough or roughly squared; aircraft, spacecraft, and associated equipment; seafood products; semiconductors and other electronic components Principal U.S. Imports: motor cars and other motor vehicles, automatic data processing machines and office equipment, parts and accessories of motor vehicles, scientific optical equipment, and semiconductors and other electronic components Best U.S. Export Prospects: Pharmaceuticals, telecommunication services, marine fishery products, biotechnology products, medical equipment and supplies, industrial chemicals, aircraft and parts, architectural/engineering/construction services, sporting goods, computer software and services, and building products. Foreign Supplier Share of Japanese Imports in 1990: 1. S.E. Asia: 23.3% 4. Middle East: 13.2% 2. U.S.: 22.4% 5. Indonesia: 5.4% 3. E.C.: 14.9% 6. Australia: 5.3% BOP Current Account Balance: 1989: $57.16 billion 1990: $35.79 billion Trade Balances with Leading Partners, 1990 ($B): 1. U.S.: 41.07 2. S.E. Asia:28.12 3. E.C. (including the Federal Republic of Germany): 18.49 4. Federal Republic of Germany: 6.30 5. Republic of Korea: 5.75 6. Middle East: -21.46 IMPORT POLICY: 1. Tariffs: The average Japanese tariff is low, but on specific items, particularly foodstuffs and leather goods, both tariffs and quotas are trade restrictive. Japan has recently eliminated the import quotas on beef and citrus, as well as the quotas on many processed foods. 2. Taxes: Since April 1, 1989, the commodity tax has been replaced with a general consumption tax of 3 percent, 6 percent on autos, which is levied on the c.i.f. plus duty value. 3. Licensing of Technology: Until recently, a report had to be filed with the Ministry of Finance and other competent ministries through the Bank of Japan before signing a licensing contract. In practice, the investor was notified that the Japanese Government had no objection within one hour following notification, if the proposed investment was in unrestricted industries. However, as part of the U.S.-Japan Structural Impediments Initiative Agreement, this prior notification requirement has been replaced by ex post facto notification for investment in unrestricted sectors. More stringent regulations apply to "designated technologies" which have been determined to have significant influence on the security of the nation and the national economy. INVESTMENT: Foreign Ownership Restrictions: A 100 percent foreign capital is allowed in principle except for the following sectors: broadcasting; telecommunications; electric power generation; domestic rail and air transportation; arms; gun powder; atomic energy; aircraft; space development; narcotic manufacturing; vaccine manufacturing; security guard services; agriculture, forestry, and fisheries; petroleum refining and marketing; leather and leather product manufacturing; and mining. Total U.S. Direct Investment in Japan (cumulative): 1988 $16.9 billion, 1989 $18.5 billion, 1990 $20.9 billion. Principal Foreign Investment Sectors in Japan (1950-1989): Machinery, chemical, commerce/foreign trade, services, real estate, petroleum, banking/insurance, and metals. U.S. Share of Foreign Direct Investment in Japan: 50.5 percent (as of March 31, 1990) Principal Foreign Investors in Japan (JFY 1989): United States, the Netherlands, Federal Republic of Germany, Switzerland, United Kingdom, and Hong Kong. Japan's Foreign Direct Investment in U.S. (cumulative): 1988 $53.4 billion, 1989 $67.3 billion, 1990 $83.5 billion.