higher share of its needs for these materials. Beginning in the 1960s, the government adopted a policy of gradual trade liberalization, easing import"s, reducing tariff rates, freeing transactions in foreign exchange, and admitting foreign capital into Japanese industries, which continued through the 1980s. On August 15, 1947, the United States' government announced a policy that relaxed trade restrictions to Japan; reopening private exports. Virtually all export tax incentives were eliminated over the course of the 1970s. Oxford University: Oxford University Press. Exports are expected to continue growing on the back of strength in the global economy, while imports will also likely to maintain solidness due to higher energy prices and a recovery in domestic demand, analysts said. Balance of merchandise trade edit Between 19, Japan incurred annual trade deficits (based on a customs clearance for imports) ranging from US400 million to US1.6 billion. Trade deficit and combat what it says are unfair trade policies. The pull came from increasing demand for Japanese products as the United States and other foreign markets grew and as trade barriers in major market countries were reduced.
The era of chronic trade deficit ended in 1965, and by 1969, with a positive balance of almost US1 billion, Japan was widely regarded as a surplus trading nation. This decline came as the yen finally appreciated strongly against the dollar (beginning in 1985) and as a rapid rise in manufactured imports began to offset the large drop in the value of raw material imports. Exports included a wide variety of products, virtually all of which were processed to some degree. Trade was still heavily regulated; as a foreign buyer would need to submit a purchase and sale agreement, and the Japanese exporter also needed to file an application to the Board of Trade, which would then be forwarded to scap for final approval. There were restrictions to heavy industry outputs such as steel, aluminium, and copper; which limited Japan's shipbuilding, machinery, and chemical industries. Yet another factor determining import levels was the exchange rate. Japanese steel, ships, watches, television receivers, automobiles, semiconductors, and many other goods developed a reputation for being manufactured to high standards and under strict quality control. (1995) Industrial Policy and Semiconductors: Missing the Target, AEI Press, Washington,.C. Foodstuffs, however, were relatively steady as a share of imports, rising from just over 12 in 1960.5 in 1988.