Higher oil prices send Japan's import costs soaring

Dubai | By A Staff Reporter | 29-11-00 |

Mairead McCabe, Golden Eye's Marketing Manager. ©Gulf News Higher oil prices had a profound impact on the cost of Japan's imports from the UAE in the first half of this year, which totalled Dh25.69 billion, up sharply from Dh13.13 billion in the corresponding period of 1999, according to the Japan External Trade Organisation (Jetro).

Yet Japan imported only 204.14 million barrels of crude, down from 208.22 million barrels in the 1999 period.

Japan bought UAE crude at an average price of $26.70 a barrel, more than double the $13.13 paid in the first half of 1999. The bill came to Dh20 billion against Dh10.01 billion in the 1999 period.

Crude oil comprised 78 per cent of Japan's purchases of UAE mineral fuels, making the UAE the largest supplier followed by Saudi Arabia and Iran.

Japan's imports of petroleum and LNG were valued at Dh3.70 billion compared to Dh2.44 billion in the 1999 period.

Semi-finished aluminium ranked third in Japan's imports from the UAE at Dh326.2 million, up from Dh219.8 million, even though prices rose nearly 20 per cent.

Jetro said, "Aluminium imports from the UAE had been on the decline during the past two or three years due to the economic stagnation in Japan caused by the currency crisis and the economic slowdown in East Asia."

Total trade soared 74.11 per cent to Dh30.38 billion from Dh17.43 billion. Another contributor was the almost 10 per cent increase in Japanese exports to the UAE.

"The extra revenue earned from high oil prices helped start more economic activities in the area and thereby created more demand for imports from Japan."

After the decline in 1999, the UAE's imports from Japan rose 9.24 per cent in the first half of the year to Dh4.69 billion. Machinery and equipment led the way at Dh3.65 billion compared to the 1999 period's Dh3.19 billion.

However, another important import category from Japan, passenger cars, was steady at Dh1.073 billion against Dh1.075 billion in 1999. But transport equipment rose a marginal 1.74 per cent to Dh1.59 billion.

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-- Martin Thompson (mthom1927@aol.com), November 29, 2000