Looking for some tips on working with Japan?
Call our research section to set up a time to view our "First Meeting" tape. In this hour-long tape, U.S./Japan business people and trade experts share their many years of experience. They provide both practical insights and and some historical perspective on how you can best approach the Japan market.

Call (907) 269-8112 or e-mail Shelley James to schedule a time for a viewing.

Trade Leads

2001 Pollock Roe Supply

Alaska-Japan Trade Overview

Top exports to Japan are seafood, crude oil and natural gas, wood products and minerals.

Crude oil: Beginning in 1996, after the North Slope crude oil export ban was lifted, oil exports became very important to Alaska’s trade picture. Crude sales to Japan totaled $184.8 million in 2000, a decrease of 5% from 1999. However, North Slope oil producers have announced they will not export crude oil overseas in 2001, but instead will ship all North Slope crude to U.S. West Coast refineries. While this policy will cause a statistical impact in Alaska’s export picture, the economic impact will be negligible, as the change is merely a shift in the destination of the crude, and the price at US refineries will be the same as in Japan and other Asian countries.

Natural Gas: Japan’s first import of liquefied natural gas came from the Kenai fields in 1969, and shipments of LNG continue to this day. Natural gas exports to Japan held steady at approximately $145 million in 2000.

North Slope Natural Gas Pipeline Project. In 1998 the Alaska North Slope Gas Development Act was passed to allow the state to negotiate the fiscal terms of a gas line agreement. In August 1998, Japan’s Marubeni Corporation joined ARCO Alaska, Phillips Petroleum, Yukon Pacific Corporation and Foothills Pipe Lines Ltd., to form the ANS Gas Pipeline Sponsor Group, one of the groups whose goal was to make this project happen. Other Japanese trading companies have also expressed interest in this project. With the North Slope gasline to the Lower 48 a possibility, this may allow cost reduction for gas to Asia and Japan, making the export of North Slope gas to Asia cost-effective.

Japan has been Alaska’s most important export market since before statehood.

For nearly every product exported from Alaska, Japan has been the major importer.

Alaska was the first American state to receive post-World War II Japanese investment, in pulp mills in Southeast Alaska. In 1963 Alaska Kai -- a Tokyo group representing Japanese business interests in Alaska -- formed, and continues to this day to support expended cultural and business relations between Japan and Alaska.

In 1965, Alaska was the first US state to open a trade office in Japan. Today, the Alaska State Representative in Japan, Mr. Kojiro Abe, assists Alaska exporters with the important Japan market. Mr. Abe’s staff includes Ms. Mariko Kuroda, Trade Specialist, and Ms. Hiromi Mita. Click here for a brief history of Alaska’s trade representation in Japan.

In 1970, the government of Japan opened a consular office in Anchorage. In 1982, due to the importance of the Alaska-Japan relationship, it was upgraded and became the Consulate-General of Japan. Over the years, this office has worked to promote trade and cultural exchanges.

Governor Frank Murkowski led a trade delegation to Japan in October 2003 focusing on seafood, oil and gas, mining, tourism and transportation. During both missions, the Governor and private sector renewed ties with Alaska’s important customers and thanked them for their business, while working to open the door for new trade opportunities.

Alaska is proud to be home to hundreds of Japanese people, who help provide our state its rich cultural diversity.

All these factors combine to make Japan Alaska’s longtime number one trading partner.

In 2000, 56% of Alaska’s timber exports went to Japan. Wood product exports to Japan were valued at $117.9 million, a decrease of 23% from 1999.

The Alaska Department of Community and Economic Development commissioned a study on international opportunities for Alaska softwood producers. In the September 2000 report, the University of Washington Center for International Trade in Forest Products gave the following assessment:

"Market opportunities exist for Alaska producers in supplying both structural and non-structural wood products into Japan. The Japanese market is experiencing a period of transition due to regulatory changes and new construction technologies. With regard to structural lumber, the Japanese market is transitioning from a green lumber market towards kiln dried lumber. Taking advantage of this transition will require a substantial investment in kiln drying facilities on the part of Alaska sawmill operators. In particular, Alaska producers should be able to take advantage of the preference for Sitka spruce in Hokkaido to supply kiln dried dimension lumber for the 2x4 market and kiln dried baby squares for the post and beam market (90mm, 105mm, 120mm, 130mm, and 150mm squares). Two other products that should be of interest to Alaska sawmillers are non-structural studs (mabashira) and sill plates (dodai) for post and beam homes. The precut industry provides an opportunity for Alaska sawmillers to export kiln dried lamstock to precut component manufacturers.

"Perhaps the greatest market opportunity for Alaska softwood lumber exists in the market for non-structural lumber products. Japanese shoji manufacturers have a long history of utilizing Alaska Sitka spruce, western red cedar, and Alaska (yellow) cedar in the manufacture of a wide variety of products. Clearly there is already a strong market for logs and waney cants in the shoji industry. However, the opportunity exists to supply both green and kiln dried lumber to shoji manufacturers. Shoji manufacturers have already shifted towards using white spruce in their products, and they indicated that price is an important consideration."

The entire report may be viewed at http://www.dced.state.ak.us/cbd/wood/tree12.htm

Japanese Investment

Japanese investment creates important jobs throughout Alaska - from salmon and surimi producers in coastal Alaska to Seibu's first-class Alyeska Resort, to the Aurora Research Center at the University of Alaska Fairbanks Geophysical Institute, and Sumitomo’s investments in Red Dog Mine and the Pogo project.

Click here for more information about Foreign Direct Investment in Alaska.

Alaska is an exciting and growing tourism destination for Japanese people. Last year 30,000 Japanese visited Alaska. Japan is Alaska’s number 2 market for international visitors, second only to German-speaking Europe, and Japan is one of the few markets that provides year-round visitation to Alaska. Reason: The Aurora. Japanese visitors are interested in natural phenomena, and Alaska is accessible.

Educational and cultural links are stronger than ever. There are nine sister-city relationships between Alaska and Japanese communities. Each year, nearly a dozen young Alaskans go to Japan to help teach English in Japanese schools. Students with Sand Lake Elementary School Japanese immersion program recently returned from a visit to Japan.

Alaska is proud to be home to hundreds of Japanese people, who help provide our state its rich cultural diversity.

In 2000, 69% of Alaska’s seafood exports went to Japan. Of all the products Alaska exports to Japan, more than half of the value is from seafood. The dollar value of Japan’s import of Alaska seafood was $709.5 million, down 3% from 1999 but an increase of 38% over the 1998 figure.

The Division of International Trade and Market Development collects and disseminates wholesale market prices from the Tsukiji and other markets weekly. This report is posted at http://www.dced.state.ak.us/trade/japan/japan.htm – click on "current seafood prices."

Click here for Seafood Market Overview in Japan
Compiled by the Alaska State Trade Representative in Japan, October, 2001