Japan-Spain: Economic Relations and Business Opportunities

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The presence of Spanish companies in Japan is still scarce, despite being the third economy in the world and having a market with high income consumers that offers many possibilities for our products and services.

This country is part of the "Comprehensive Market Development Plan", which aims to promote bilateral trade and investment with a group of economies considered a priority for the projection of Spanish foreign trade.

The free trade agreement signed with the EU will expand the business possibilities for European and Spanish companies.

Spanish-Japanese trade has recently undergone a remarkable transformation. Non-energy exports increased in 2017 to reach 2,445 million euros, the highest historical value.

Spanish imports from Japan have been recovering since 2013, when they reached 2,437 million euros, so that in 2017 they already exceeded 3,928 million euros.

In 2017, Spain was the sixth largest supplier to Japan in the European Union, accounting for 0.51% of Japanese imports. For its part, Japan was the nineteenth customer for Spain, with a share of 0.88%.

The main Spanish goods exported to Japan in 2017 were meat products (17.8%), motor vehicles (14.9%), pharmaceutical products (13.1%), fats and oils (6.2%), non-knitwear (4.8%), minerals (4%), beverages (3.7%), organic chemical products (3.6%), knitwear (2.6%) and fish products (2.6%).

The number of Spanish companies that exported to Japan in 2017 was 8,993, a substantial increase from 7,011 in 2016.

Japanese imports are focused on the mechanical and transport industry sectors. In 2017, Japan sold to Spain mainly products such as motor vehicles (49.9%), mechanical machines and appliances (19.9%), electrical appliances and material (9.4%), optical appliances (5.7%), organic chemical products (2.1%) and plastic materials (1.8%).

In terms of investments, Japan was the twelfth largest foreign investor in our country in 2016, with accumulated flows of 5.701 billion euros.

The Economic Partnership Agreement between the European Union and Japan will boost commercial exchanges of goods and services, generating great investment opportunities for both parties.

Among the non-tariff measures included in the Agreement and directly affecting EU companies, some are related to technical requirements and certification procedures that may hinder European and Spanish exports to Japan.

It is estimated that 85% of European agri-food products could enter the Japanese market free of duties. The Agreement also guarantees respect for European geographical indications for more than 200 products subject to protected designations of origin.