Japan has been transformed in recent decades from a major exporter
of textiles and clothing to a major importer. It is now the world's
fourth largest import market after the EU, the USA, and Hong Kong,
and the third largest consumer of imports.
In 2004 Japanese textile and clothing imports rose in value by 11.0%
to US$26.6 bn as the economy recovered. After a 0.3% fall in 2002
and a 1.4% rise in 2003, real GDP grew by 2.6% in 2004 while
private consumption growth picked up further to 1.5%. China
dominated imports with 74.0% of the total by value although its share
in clothing (82.4%) was almost double that in textiles (46.3%). Italy
was the number two supplier with 4.9% of imports by value. But its
volume share was only 0.5%, reflecting the high value of Italian
supplies. By contrast, the USA's volume share, at 4.6%, was almost
double its 2.5% value share. US supplies to Japan consist mainly of
textiles, which tend to be of lower unit value than clothing.
China's high share of imports reflects years of Japanese overseas
investment in China as Japanese production became uncompetitive. It
also reflects China's proximity to Japan, which facilitates quick
response. But the key factor is the absence of quotas, and many see
Japan as a model of the future pattern of imports into the US and EU
markets following the elimination of quotas at the end of 2004. | 
