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Japan's Trade Barriers

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Japan's Trade Barriers

Japan's Trade Barriers

Trade barriers established by Japan to the natural resources

Japan established trade policies with the purpose of a long-term economic growth, and prosperity. Trough free and fair international trade Japan has gained recognition throughout the world. The WTO has played an important role to contribute to Japan's economic growth. Up to this day, Japan still committed to the Doha Development Agenda.


The exemption on income taxes established to benefit Japanese export firms, was a government incentive to increase exportations in the country. As a consequence of the incentive, Japan developed several world-class industries making them extremely competitive in the international market.

The success leaded to allegations forms other countries claiming unfair competitive practices from Japan. The IMF interfered pressuring Japan to comply with their procedures, and Japan had to secede these incentives. After the new procedures took place, the exports in Japan dropped.


Over the last 40 years, Japan reduced international trade barriers, such as tariffs, and quotas that prevented market access. Japan ranks on the world's lowest levels of tariffs on industrial products, but it remains imposing the highest tariffs on the world on agricultural products, and financial services.

Recently Japan conducted negotiations between the United States and EU to improve international trade. Despite the plea from The United States and the EU to open and free trade agreements to access their markets, Japan is taking its time, wanting to advance in the international trade.

Japan has a traditional culture and values long-term relationships, stability, predictability, and continuity. Opening up ports and new free trade agreements may not work in Japan. New comers may face a disappointing scenario, when consumers stay loyal to their usual brands and products.

Tariffs of Japan

Basic trading system. - The Japanese government uses the basic trading system, dividing the system into three different categories of tariffs;

General Tariffs. - applies to goods in general.

Temporary Tariff Rate. - This Tariff has priority over the general tariff. The temporary Tariff Rate applies reductions according to certain international treaties.

WTO-bound tariff. - In case the WTO-bound tariff has a lower rate than the general or temporary tariff, the WTO-bound has preference. The rate imposed by the WTO has to be honored.

Preferential Tariff Rate (GSP). - The preferential tariff



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