Investors choosing Japan business formation to conduct international trade benefit from the Economic Partnership Agreements Japan has signed with Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Australia, Chile, India, Mexico, South Korea and Switzerland. Under the terms of these agreements, Japanese exports are exempt from or enjoy reduced tariffs when imported to these countries, while imports into Japan also enjoy reduced tariffs.

Japan experienced a growth in the value of its international trade from 91.4 trillion yen in 2001 to 157 trillion yen (US$1.43 trillion) in 2007. Japan has recorded an annual trade surplus since 1981. In 2007, Japan enjoyed a trade surplus of US$101 billion (US$73 billion in 2006). This growing surplus was due primarily to a 19% increase in the value of exports to China. In 2007, the value of Japanese exports amounted to US$778 billion (US$647 billion in 2006).

Japan’s principal export market is the USA, which accounted for 20% of all Japanese exports in 2007, followed by China (15%), the European Union (14.8%), South Korea (7.6%) and Taiwan (6%). Entrepreneurs pursuing Japan business formation for export industries should note that transport equipment (including motor cars, buses and trucks as well as spare parts) accounted for 25% of exports in 2007. Other key exports included electrical machinery (e g semiconductors, audiovisual equipment, telecommunications equipment and electronic circuits) with 20% and machinery (including power generating machinery, computers and metalworking machinery) with 20%. 

On the other hand, the value of Japan’s imports amounted to US$677 billion in 2007 (US$623 billion in 2006). 21% of Japan’s imports were sourced from China, followed by the USA (11.5%), the European Union (10.5%) and Saudi Arabia (6%). Imports of energy (oil, coal, refined products and liquefied natural gas) accounted for 17% of total imports, followed by electrical machinery (13%), manufactured goods (10%) and foodstuffs (8%).

Due to its few natural resources, Japan relies heavily on international trade as a driver of its economy. To emphasise Japan's lack of resources, the country imports 80% of its energy needs. Consequently, Japan has a modern import and export infrastructure, as well as a sophisticated domestic transport network. Japan’s modern, efficient ports handle 99% of the country’s international trade and offer a crucial link to support Japan business formation.

Japan's modern, efficient transport infrastructure further encourages Japan business formation. For example, the Shinkansen (bullet train) has carried more than six billion passengers without a single fatal accident since 1964. Japan also has a sophisticated air transport industry, providing regular and reliable connections to key business locations within the country, throughout Asia and to Australasia, the USA and Europe. Examples of flight times include Tokyo to Singapore (7 hours), Osaka to Dubai (11 hours) and Nagoya to San Francisco (10 hours).