Alaska is fortunate because Governor Murkowski has been traveling to Japan and the Far East for more than two decades as a United States Senator. Today he is one of the most experienced foreign affairs Governors in in the United States. His experience and contacts have opened trading doors for Alaska businesses.

Alaska has strong economic ties with Japan. Japan has been the principal buyer of Alaskan seafood for the last 50 years. This important trade relationship also includes significant Japanese direct investment in our seafood and forest products industries. Japan has such a large economic commitment in the northland that Alaska became the first American state to open a trade office in Japan. Japan has maintained a full-time consulate in Anchorage since 1982. The current Consul General is Akihiro Aoki who arrived in Anchorage in April of 2003.

Japan continues to be Alaska’s most important trading partner. In 2003, Japan purchased over $1 billion in products from Alaska, accounting for 38% of all exports last year.

Between 2002 and 2003, trade with Japan decreased by 7%, approximately $73 million. The largest specific product decrease was in fish roe, a $52 million decrease,a 26% drop in that commodity from the previous year. Japan has suffered from economic problems and deflation, which affects Alaska’s exports to the country. The Japanese seafood market has been in decline for the last decade. Japan imported $15.1 billion in seafood from the rest of the world in 1995. That amount has declined steadily and totaled only $10.6 billion in 2003, a 30% decline.

On the positive side, energy sales to Japan rose substantially. LNG and light oil exports were up by 20%, an actual dollar increase of $39 million. This improvement came with the renegotiation of the contract with the LNG facility on the Kenai Peninsula. Forest product sales were up as well, by $16 million, a 23% increase over the previous year.

Large Japanese corporations continue to support the Alaskan economy by maintaining a strong presence and investment locally. Some of those companies include JAL, Nippon Cargo Airlines, Seibu Alaska, Inc., Peter Pan Seafoods and Unisea.

In October, 2003, Governor Frank Murkowski led a 12-day trade mission to Japan, Korea, Hong Kong and Taiwan. The Governor met face-to-face with many of Alaska’s most important customers and investors and reinvigorated trading relationships.