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Japan country brief

The trading relationship between Japan and New Zealand is one of New Zealand’s longest and most significant. Japan is a major bilateral and regional partner of New Zealand and strong political ties are underpinned by commonality of views, shared interests in growth and development of the Asia Pacific region and substantial economic tourism.

Japan is New Zealand’s fourth largest bilateral trading partner, with two-way trade worth NZ$6.1 billion in 2011. Total trade between the two countries declined by 2 percent in 2011.

Opportunities

The following sectors present opportunities for New Zealand exporters:

Skincare From 2005, the country has seen depopulation due to the constant decline in the birth rate, and an increase in older population. The ageing population offers growth potential to anti-ageing skincare products.
Healthcare The vitamins and dietary supplement market is expected to be driven by the continuing demand for products focused on beauty, anti-ageing and wellbeing.
The medical biotechnology sector is leading the biotechnology market. Regenerative medicine is an area with high growth potential.
The adoption of electronic medical records is a major healthcare ICT priority in Japan and the adoption rate for electronic medical records among hospitals and general clinics was 14 percent and 13 percent, respectively.
Renewable energy Renewable sources currently account for only 1 percent of the total power generated in Japan. However, the government has been focusing on renewable energy after the Fukushima Daiichi Nuclear Power Plant incident. For example, it has removed regulatory barriers and introduced subsidies to encourage the development of geothermal power stations.

Challenges

Real GDP is expected to grow by 1.3 percent in 2012, driven by spending on reconstruction following the disaster in 2011, but the Economist predicts that policymakers face challenges in achieving a self-sustaining recovery in demand during 2012-2016.

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Tax

All goods are subject to a 5 percent consumption tax. This is applied to imported goods on clearance.

Logistics

Air New Zealand offers direct airfreight services to Tokyo and Osaka, though some of these flights may have limited capacity.

Airfreight is also possible through Sydney or Melbourne on Qantas, Singapore on Singapore Airlines, Hong Kong on Cathay Pacific and Seoul on Korean Air.

There are regular shipping services between the main New Zealand ports and Japan. New Zealand products commonly enter Japan through Tokyo, Yokohama, Kobe, Osaka, Nagoya and Kawasaki. Japan seaports are accessed through hub ports such as Pusan (South Korea) and Singapore.

Cultural and business tips

New Zealanders can stay in Japan for up to 90 days for business trips without a visa. The visa exemption does not apply to anyone being paid for activities in Japan.
English is taught in schools, but competence varies considerably.
The Japanese are perfectionists and demand very high standards. Once they lose confidence in something it is unlikely to be regained.
Exchanging business cards is mandatory. Giving and receiving cards is regarded as an important and solemn gesture.