DESPITE the global recession, trade volume between Myanmar and Japan is up by about 7 percent, from US$472.38 million in 2007 to $505.5 million in 2008, according to the World Trade Atlas of Japan.

“One of the major reasons why trade is going up is garment exports to Japan,” said Mr Eitaro Kojima, managing director of Japan External Trade Organization (JETRO).

U Myint Soe, president of Myanmar Garment Manufacturers’ Association, told The Myanmar Times that garment exports to Japan increased about 40 percent, from $96 million in 2007 to $135 million in 2008.

According to the World Trade Atlas of Japan, trade cooperation has been growing over the past five years, when FDI from Japanese garment factories shifted to Myanmar.

Accordingly, Myanmar-Japan trade volume increased about 90 percent within five years, from $264 million in 2003 to $505.5 million in 2008.

In 2008, Japan imported $317.2 million worth of goods from Myanmar, of which about 40pc were garments, said Mr Kojima.

The garment trade displaced fisheries products as Myanmar’s largest export to Japan in 2007. Due to Myanmar’s trade policy of “Export First, Import Later”, Myanmar still enjoys an annual trade surplus with Japan.

Last year, Myanmar enjoyed a trade surplus of $129 million as Myanmar’s exports to Japan reached $317.2 million.

Japan mainly imports garments, fisheries products, footwear, agricultural produce and timber from Myanmar, while Japan’s main exports to this country are machinery, vehicles, electrical machinery, iron and steel, cotton and plastics.