JETRO LOS ANGELES ACTIVITIES

ABOUT JETRO JETRO (Japan External Trade Organization) is a government-affiliated organization that works to promote mutual trade and investment between Japan and the rest of the world. Currently, we have 73 offices in 55 countries including 6 in the U.S. Originally established in 1958 to promote Japanese exports abroad, JETRO's core focus in the 21st century has shifted toward promoting foreign direct investment into Japan and helping small to medium size Japanese firms maximize their global export potential.

Domestic and overseas networks of JETRO Japan External Trade Organization (JETRO) Offices In Japan　　・JETRO Headquarters, Tokyo ・37 regional offices 　　　　　　　 Overseas　73 offices in 55 countries No. of employees　　 In Japan 834 Overseas 718 　　　　 Total 　　1,552 (as of April 2012) JETRO domestic network:　　 Of 47 prefectures in Japan, JETRO has regional offices in 37 to follow up on local companies. ジェトロは日本で唯一の政府系貿易投資振興機関で、1958年に設立されました。国内36か所、海外は当地アルゼンチンを含めて55か国73か所、合計で109か所の事務所ネットワークを持っており、国内外合わせて1,552名の職員を擁する組織です。 3 Copyright (C) 2013 JETRO. All rights reserved.

Japanese trade and investment and transition of JETRO’s activities （US$ million） FDI （US$ million） First East Asia Summit（05） Financial Crisis（07） Lehman Shock（08） Japan`s First EPA [with Singapore]（02） Current balance surplus peaks 4.3% of nominal GDP, Maekawa Report（86） First APEC Ministerial Conference（89） US-Japan Structural Impediment Initiative ends（90） Plaza Accord, Action Plan to Opening Market（85） China`s accession to WTO（01） Asian financial crisis（97） Voluntary restriction on auto exports to US（81） First oil crisis, yen floating exchange rate system（73） Japan-US Action Plan（92） Accession to OECD, Tokyo Olympic Games（64） Economic White Paper “Post-war has ended”（56） Trade Exchange liberalization plan（60） Automobile import liberalization（65） Accession to GATT（55） First capital liberalization（67） Nixon Shock（71） Birth of EU（93） Second oil crisis（79） この図は約60年前から現在までの日本の貿易や投資の推移とジェトロ事業の変遷、主な通商政策の推移を示したものです。 　第2次世界大戦後の混乱期から1960年代まで、日本は自動車等の輸入制限措置を採用していました。国際収支の体質改善を目指したものでしたが、現実には国内産業の保護育成のための手段としても利用されてきました。 　日本政府は輸入制限措置の導入と同時に脆弱な産業の育成にも乗り出し、その結果、60年代に入ってからの貿易・資本自由化、自動車輸入自由化につながりました。 当時のジェトロは政府や企業の強い要望を受けて、日本製品の輸出促進に取り組んでいます。貿易赤字の解消を目指しつつ、中小企業等の育成や競争力強化を支援することによって、国力増強の一翼を担ったのです。その後の日本はこの図で示した通り、皆さまご案内の通り、貿易立国の地位を築いたのです。ちなみに、ジェトロもその時々の通商政策や産業育成策に沿って、さまざまな業務に携わってきました。政府の通商政策や産業育成策によって1950年代から競争力を蓄えてきた日本企業が海外での生産・販売を強化し始めた1980年代には、従来の輸出支援業務だけでなく、海外進出企業（直接投資）支援にも乗り出したのです。同じような時期に輸入促進業務にも取り組み始めています。外国産品の輸入を支援する貿易振興機関は当時の世界でジェトロが唯一の存在だったと思います。 　さて、実はここで申し上げたいのは、通商政策と産業育成策は車の両輪で同時に推進していくことの重要性です。どちらか一方が欠けると車は前に走りません。そうした国の経済はおそらく発展しないでしょう。日本に当てはめれば、今の姿はなかったかもしれません。この車の両輪に加えて、先に触れた「守り」から「攻め」の貿易投資促進政策の実施を通じ、日本は国富の確保とさらなる経済発展を目指しているのです。 以上 1950s – 70s 1980s 1990s 2000s Present Export promotion Support for Japanese firms operating overseas Attracting foreign firms Import promotion Export promotion Export promotion (agriculture, forestry, marine products) Support for Japanese firms operating overseas (service Industry) Attracting foreign firms Import promotion Copyright (C) 2013 JETRO. All rights reserved.

JETRO LOS ANGELES INITIATIVES Japanese Food Healthy ingredients, sake, proper preparation Japanese GREEN Technologies Energy efficiency, SMART buildings, Sustainable design, renewables Japanese Medical Equipment and Bio Technologies Promoting partnerships between US and Japan. Japanese Entertainment Manga, anime, independent films, licensing content Japanese Restaurants and Retail Shops Support to start up restaurants and retail shops. Investing to Japan Support foreign companies establishing business base and starting up business in Japan, with Invest Japan business Support Centers(IBSC).

The Japanese Economy and Abe-nomics

The Japanese Economy and “ABE-NOMICS “ THREE ARROWS FISCAL STIMULUS MONETARY STIMULUS STRUCTURAL REFORM

US and Japan’s Trade Exports Japan was the United States' 4th largest goods export market in 2013. U.S. goods exports to Japan in 2013 were $65.1 billion, down 6.9% ($4.8 billion) from 2012, but up 25% from 2003. U.S. exports to Japan accounted for 4.1% of overall U.S. exports in 2013. The top export categories (2-digit HS) in 2013 were: Optic and Medical Instruments ($8.0 billion), Aircraft ($7.1 billion), Machinery ($5.8 billion), Electrical Machinery ($4.9 billion), and Meat (pork and beef) ($3.3 billion).  U.S. exports of agricultural products to Japan totaled $12.1 billion in 2013, our 4th largest export market. Leading categories include: pork and pork products ($1.9 billion), corn ($1.8 billion), beef and beef products ($1.4 billion), and wheat ($1.0 billion). Imports Japan was the United States' 4th largest supplier of goods imports in 2013. U.S. goods imports from Japan totaled $138.5 billion in 2013, a 5.4% decrease ($7.9 billion) from 2012, but up 17.4% from 2003.  U.S. imports from Japan accounted for 6.1% of overall U.S. imports in 2013. The five largest import categories in 2013 were: Vehicles ($49.8 billion), Machinery ($30.5 billion), Electrical Machinery ($18.4 billion), Optic and Medical Instruments ($6.6 billion), and Aircraft ($3.8 billion). U.S. imports of agricultural products from Japan totaled $572 million in 2013. Leading categories include: wine and beer ($52 million), snack foods (including chocolate) ($47 million), and other vegetable oils ($41 million). 

Change in real GDP (actual value) (2005 price basis, annualized) 2014 Q1 Q2 Q3 Q4 2013 Q1 2012 Q1 2011 Q1 2010 Q1 2009 Q1 2008 Q1 Copyright (C) 2014 JETRO. All rights reserved.

Abe Administration’s Economic Policy “Three arrows”for economic revitalization Japan Revitalization Strategy Overcoming deflation, expanding employment, revitalizing the economy Monetary policy Fiscal policy Growth strategy Promoting disaster prevention and reduction programs Accelerating reconstruction efforts for areas damaged by the earthquake Promoting investment to expand energy conservation and renewable energy Enhancing assistance for SME financing Focusing on investment in areas such as healthcare, agriculture and education Setting a 2% inflation target Fund supply by Bank of Japan (monetary easing) 【Efforts by JETRO to realize the policy】 Expansion of FDI, expansion of agricultural, forestry, fishery and food exports, tapping into emerging markets, etc. Simultaneous implementation of the “three arrows” for reviving the Japanese economy: (1) bold monetary policy; (2) flexible fiscal policy; and (3) a growth strategy that encourages private sector investment. Aggressive implementation of economic policy, carving out new growth sectors both domestically and internationally, and mobilizing human talent, goods and funds. 10 Copyright (C) 2013 JETRO. All rights reserved.

Survey of Japanese Companies In Southern California 2014

Scope/Method of Survey The survey covers Japanese companies having a base in Southern California and meeting one of the following conditions: [1] A company with 10 % or more of its capital owned (directly or indirectly) by a company headquartered in Japan; [2] a branch or representative office of a company whose headquarter is located in Japan; or [3] a company established and operated by individuals of Japanese origin. Southern California is defined as a region that comprises 10 counties including Los Angeles, Orange, Ventura, Santa Barbara, Kern, San Luis Obispo, San Bernardino, Riverside, San Diego and Imperial. JBA/JETRO asked the 673 of these Japanese companies on their record to take part in the survey, and received a positive response from 626 companies. Survey forms were later collected electronically from 435 companies (rate of collection: 69.5%) (Survey period: February 2014).

Geographic Distribution

Industrial Distribution Statistics

Industrial Distribution Statistics by Area

Japanese Manufacturing Companies in USA CA 135 N=661 (2013 JETRO)

Timing of Incorporation

Year of Establishment by County Before 1970 1971-80 1981-90 1991-00 2001-10 After 2011 LA (294companies) 40 49 85 50 46 24 OC (92 companies) 14 20 18 15 7 SD (37companies) 3 1 12 9 11 Others (11companies) 2 5

Total Sales

Job Creation

Job Creation by Industry 　Responding Companies Number of employees Ratio Manufacturing 128 27,091 47.0% Wholesale/Retail 67 15,950 27.7% Service 111 6,677 11.6% Trading 53 3,905 6.8% Transportation 32 2,017 3.5% Financial 15 1,319 2.3% Construction/Real Estate 7 525 0.9% Other 5 133 0.2% Total 　418 57,617 100%

Salaries and Wages 263,163 84.40 (Thousand Dollars) Total salaries and wages paid 263,163 Average salary paid (per employee) 84.40 N=284 Companies’ responding

Change in Sales

Change in Profit

Future Outlook

Business Advantage of CA

Concerns with Operation Business in CA

Concerns with Operation Business in CA

Specific Examples of Disadvantages ◆Labor Costs ・Minimum wage ・Medical Insurance costs increase ◆Tax ・Higher taxes than other states ◆Permit/License Procedures ・Long time to obtain permits and approvals