On June 11, the Japan External Trade Organization (JETRO) and the Massachusetts Office of International Trade and Investment (MOITI) concluded a memorandum of understanding (MOU) in Boston, aiming to strengthen partnership between the two organizations toward further expansion of trade and investment between the Commonwealth of Massachusetts and Japan. This is the first time that JETRO has concluded such a pact with a US state government. By entering into this MOU, JETRO will support exporting and business operations by Japanese companies entering Massachusetts while expecting an increase of foreign direct investment to Japan from the state. 

The parties agreed to: 
1.Cooperation in holding trade fairs and seminars and dispatching business missions 
2.Sharing information, providing introductions and promoting business collaboration 
3.Promotion in utilizing both organizations and promotion of direct investment by both parties 
4.Development of partnership between key innovation-economy sectors of both sides 
5.Promotion of mutual cooperation in third countries 
6.Consultation and information sharing on best practices 
7.Mutual exchanges of public relations, business operations and other services 

The US economy has been modestly recovering along with the world. According to the statistics of the US Department of Commerce, annualized real GDP growth rate was 2.8% in 2012 and 1.9% in 2013. Positive growth has been maintained regardless of the decrease in the pace of growth. There are also several reported cases of US firms returning offshored production bases back to America due to rising production costs in emerging countries. In addition, there is a movement to revive the manufacturing industry on the back of energy development, including what is being called the “shale gas revolution”. The scale of trade and investment between the US and Japan is tremendous. According to the statistics of the Ministry of Finance, FDI into the US from Japan in 2013 (based on balance of payments, net and flow) was the largest ever since the financial crisis at US$43.7 billion. FDI into Japan from the US (balance of payments basis, net flows) was US$1.4 billion. In addition, US exports to Japan (customs clearance basis) were US$70.3 billion while Japan’s exports to the US climbed to US$133.2 billion. 

Massachusetts has a world-class environment for research and development, particularly in healthcare, and innovation. The state government is aggressively supporting its life science and health care sectors centered on biotechnology and clean energy. The exports of the Commonwealth of Massachusetts to Japan in 2013 were US$1.762 billion. Japan was the fifth largest export destination for Massachusetts after Canada, China, Mexico and Germany. The main export items to Japan included computer and electronic equipment, various manufacturing products and chemical products. Meanwhile, Japanese exports to Massachusetts remained at US$864 million. Further economic exchanges between the two sides are expected through this MOU.

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Original Hyperlink: http://www.jetro.go.jp/en/news/releases/20140616374-news..

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