towArd A StronGer And more reSilient

U.S.-JApAn relAtionShip

2

3

“the UnShAKABle U.S.-JApAn AlliAnce iS the cornerStone of peAce, proSperity, And freedom

in the ASiA-pAcific reGion.”

“[The leaders of Japan and the U.S.] remain fully committed to strengthening the economic relationships between their two countries and across the region, based

on rules for free and fair trade. This will include setting high trade and investment standards, reducing market barriers, and enhancing opportunities

for economic and job growth in the Asia-Pacifi c.”—Joint Statement from President Donald J. Trump and Prime Minister Shinzō Abe, February 2017

A Balanced Economic RelationshipThe U.S. and Japan are top economic partners and global leaders who should continue to build this bond into a stronger and more resilient economic alliance. The U.S. is Japan’s 2nd largest trading partner and Japan is the U.S.’s 4th largest trading partner.

“The U.S.-Japan relationship is the most important bilateral relationshipin the world, bar none.”

—Mike Mansfi eld, former senator and American ambassador to Tokyo, September, 1982

Japan Foreign Direct Investment to U.S.

Japan Imports from U.S.

U.S. Jobs Created by Japanese Companies

Japan Eager toContinue Investing

400+ billion dollars in 2015 850,000+ Americansdirectly employed

U.S. exports of goods and services to Japan exceeded

$100 billion in 2016Source: U.S. Bureau of Economic Analysis

Since 2012, more than 50%of Japanese manufacturers

in the U.S. have consistently considered expansion

Source: JETRO

Japan Balances Investment and Trade with its U.S. Partners

4

JApAn inVeStS in AmericA

Japan a Leading Investor in the U.S.At $411 billion stock and $31 billion flow, Japanese investment in the U.S. leads all G20 nations.

Japanese FDI Continues to RiseJapan is both one of the largest and one of the fastest growing sources of inbound U.S. foreign direct investment, vastly outpacing other countries.

Source: U.S. Department of Commerce Source: U.S. Department of Commerce

Source: U.S. Bureau of Economic Analysis

Foreign Direct Investmentto the U.S. by Country

(Stock, 2002–2015)

Annual FDI flow to the U.S. has grown steadily, rising by a factor of 5.5

between 2009 and 2015.

Stock FDI also continues to grow, increasing 60% in one recent

five-year span from 2010 to 2015.

Foreign Direct Investment to the U.S. by G20

(Flow, 2015)

Source: OFII

2010 20152009 2015

$31BJapan

Canada

UnitedKingdom Netherlands

Germany

France China

$26B $25B

$22B $21B$18B $5B

Canada

Japan

United Kingdom

$222.1B

$259.1B

$491.6B$414.0B

$568.9B

$341.9B

51%

60%Change

16%

1.0

5.5

2.6

All Countries

Japan

$411B2015

2002

UnitedKingdom

Japan NetherlandsLuxembourg Canada

5

Japan Invests in the U.S. from the Ground UpIn 2014, Japan was second only to Canada in opening new U.S. business branches from scratch, involving every aspect of the American job market from building construction to information technology to sales.

High Quality Investment from JapanJapanese investment in the U.S. is focused in critical industries and in research and development. In 2014 Japanese FDI accounted for 57 billion dollars in R&D. Since 1997, direct Japanese R&D spending in the U.S. has increased from two to more than 10 billion dollars, and continues rising.

Source: U.S. Bureau of Economic Analysis

Source: OFII Report, PIIE

19+15+13+13+9+6+4+212014 Insourced R&D Spending by Country Annual R&D spending per employee

Bill

ions

of D

olla

rs (2

014)

1,500

1,000

2,500

3,000

3,500

4,000

4,500

500

2,000

0Japan

2,815

Canada

4,008

United Kingdom

907

Netherlands

Switzerland

Japan

United Kingdom

Germany

France

Ireland

Netherlands

All Other Countries

887

Germany

685

India

366

$10.6B

$7.3B$7.1B

$5.7B

$3.4B

$2.4B

$11.6B

Source: U.S. Bureau of Economic Analysis

$7.9B8,000

6,000

12,000

4,000

10,000

2,000All Other Countries

Japan

19971997

2011

2011

Dol

lars

6

Japanese Companies Contribute to American ExportsJapanese-affiliated companies are the largest foreign contributors to U.S. export totals.

Americans Export Millions to Japan in Goods and ServicesEvery state in the U.S. benefits from export business to Japan, with 30 states exporting more than 1 billion dollars to Japanese consumers.

All U.S. StAteS Benefit from trAde with JApAn

Source: U.S. Department of Commerce

Sources: Estimated by The Trade Partnership (Washington, D.C.), AMFA

Japan

United Kingdom

Germany

Korea

France

$ Billion

Cou

ntry

3020 50 60 70 8010 400

73.5

78.7

45.0

28.8

22.7

WASHINGTON

OREGON

CALIFORNIA

NEVADAUTAH

ARIZONA

COLORADO

WYOMING

IDAHO

MONTANA NORTH DAKOTA

SOUTH DAKOTA

NEBRASKA

TEXAS

NEW MEXICO

MINNESOTA

IOWA

WISCONSIN

MICHIGAN

ILLINOIS INDIANAOHIO

KENTUCKY

TENNESSEE

ALABAMA$956M

$1.5B

$2.4B

$3.1B

$4.0B

$1B

$2.9B

$1.7B

$2.5B

$1.6B

$397M

$2.3B

$2.7B

$6.2B

$212M

$3.5B

RHODE ISLAND $149M

VERMONT $220M

NEW HAMPSHIRE $282M

DISTRICT of COLUMBIA $338M

$2.5B $4.2B

$449M

$377M

$1.4B

$893M

$464M

$2.1B

$1.8B

$424M

$1.3B

$1.6B

$357M

$97M

$331M

$233M $1.7B

$1.1B $998M

$20.1B

$8.5B

$1.6B

$259M

$1.1B

$1.4B

$682M

$8.6B LOUISIANA

GEORGIA

FLORIDA

S CAROLINA

N CAROLINA

VIRGINIA

WESTVIRGINA

PENNSYLVANIA

NEWYORK

MAINE

MISSOURI

MISSISSIPPI

ARKANSAS

KANSAS

OKLAHOMA

ALASKA

HAWAI’I

MASSACHUSETTS $1BCONNECTICUT

$3.1BNEW JERSEY

$399MDELAWARE $1.2BMARYLAND

$350 Million or less

$351 Million–$1 Billion

$1.1–$3 Billion

$3.1–$5 Billion

$5.1 Billion and above

7

Exports to Japan Support American JobsTrade with Japan creates jobs all across the U.S., generating 30,000+ jobs in five states and 10,000+ jobs in 24 states.

Americans Export Goods to Japan Across All IndustriesTop U.S. exports to Japan include aircrafts and vehicle machinery, medical and chemical products, and agricultural goods.

Source: MIT

9.2%Transportation

1,537

MASSACHUSETTS 22,870RHODE ISLAND 1,184

VERMONT 1,409

NEW HAMPSHIRE 2,039

CONNECTICUT 6,561

NEW JERSEY 18,803

DELAWARE 2,099MARYLAND 8,521DISTRICT of COLUMBIA 2,770

MAINE

500–5,000

5,001–10,000

10,001–15,000

15,001–30,000

30,001 and above

WASHINGTON

OREGON

CALIFORNIA

NEVADA

UTAH

ARIZONA

COLORADO

WYOMING

IDAHO

MONTANA NORTH DAKOTA

SOUTH DAKOTA

NEBRASKA

TEXAS

NEW MEXICO

MINNESOTA

IOWA

WISCONSIN

MICHIGAN

ILLINOIS INDIANAOHIO

KENTUCKY

TENNESSEE

ALABAMA5,626

9,694

14,954

20,089

30,388

6,682

17,578

11,864

16,766

11,160

2,558

15,132

17,244

43,910

14,46028,062

3,421

2,547

8,1114,950

3,693

13,945

11,189

2,943

10,201

13,207

2,845

632

2,690

1,84812,297

6,947

8,981

128,493

52,666

12,017

2,115

8,808

11,345

5,029

46,413 LOUISIANA

GEORGIA

FLORIDA

S CAROLINA

N CAROLINA

VIRGINIA

WESTVIRGINIA

PENNSYLVANIA

NEWYORK

MISSOURI

MISSISSIPPI

ARKANSAS

KANSAS

OKLAHOMA

ALASKA

HAWAI’I

Source: Estimated by The Trade Partnership (Washington, D.C.), AMFA

13%Instruments

3.3%Plastics and Rubbers

6.6%Animal Products

9.9%Vegetable Products

22%Machines

2.0%Paper Goods

1.9%Precious Metals

4.5%Mineral Products

3.1%Metals

3.9%Foodstuffs

17%Chemical Products

8

Japanese Businesses Hire Millions in the U.S.In 2014, Japan created jobs in the U.S. both directly and indirectly across all industries.

Japanese Companies Lead All Foreign Nations in U.S. Manufacturing Jobs

Japanese manufacturing employed more U.S. workers than any other foreign employer in 2014.

Source: U.S. Bureau of Economic Analysis

Source: U.S. Department of Commerce

Empl

oym

ent b

y 10

,000

Peo

ple

Empl

oym

ent b

y 10

,000

Peo

ple

60

40

100

120

20

80

0

Direct

839,000Indirect

1,740,000

Employment by Japanese-affiliated Companies

in the U.S.

UnitedKingdom

24.9

Japan

38.3

Germany

31.4

Canada

23.9

France

20.5

Switzerland

19.6

Netherlands

9.8

JApAneSe BUSineSSeS employ AmericAnS

Japan

83.9

UnitedKingdom

109.9

Germany

67.2

Canada

62.1

France

57.4

Netherlands

41.6

Switzerland

46.1

9

Japan Leads in American Job CreationJapanese enterprises are leaders in creating U.S. jobs, with over 117,000 new American jobs from 2011–2013 alone.

Japanese Companies Provide Quality U.S. JobsJapanese companies don’t just employ Americans, they offer stable, high-paying jobs.

Source: U.S. Bureau of Economic Analysis

Source: U.S. Bureau of Economic Analysis

United Kingdom

Japan

Germany

France

Canada

Netherlands

United Kingdom

Japan

Canada

Netherlands

Jobs in Thousands6040 100 120 14020 800

65

117

50

30

All Countries Average$79,979

Average Income in Thousands of U.S. Dollars

11

4

$70,744

$76,969

$81,813

$68,107

10

Promoting Diversity EmploymentJapanese companies support inclusive and diverse employment initiatives for all.

JApAneSe compAnieS Are Good corporAte citiZenS

Japanese companies value their American employees and their local American communities.

Leaders in corporate social responsibility, Japanese companies frequently establish charitable foundations to empower communities and engage at a local level. From Alabama to Wyoming, Japanese corporations endow cultural events at museums or theaters, provide disaster relief assistance, or donate to hospitals for disease prevention research.Japanese businesses also often develop company service days with designated organizations, sending employees out into the community to volunteer to tutor at elementary schools, provide job training for high schoolers and underemployed adults, cook meals at shelters, and numerous other charitable activities. Japanese companies believe in giving back, and know that engagement with the local community builds valuable ties for both individual and business development.

Community Outreach and Corporate Social Responsibility

YoungPeople

DisabledPersons

Women

ForeignHuman

Resources

SeniorCitizens

Veterans

Empowering Veteransand the Disabled

YouthEducation

Arts andTheater

Hospitals andDisease

Prevention

Ending Hungerand Homelessness

EnvironmentalProtection

and Sustainability

11

KEIDANREN (Japan Business Federation) is acomprehensive economic organization with a membership comprisedof 1,352 representative companies of Japan, 156 nationwide industrial

associations and 47 regional [prefectural] economic organizations.Our mission as a comprehensive economic organization is to draw upon the

vitality of corporations, individuals and local communities to support corporate activities which contribute to the self-sustaining development of the Japanese

economy and improvement in the quality of life for the Japanese people.

Keidanren1-3-2, OtemachiChiyoda-ku, Tokyo 100-8188http://www.keidanren.or.jp/en/

Keidanren U.S.A.1200 Seventeenth Street, NWWashington, D.C. 20036http://keidanren.us/

america@keidanren.or.jp