US trade with Japan may decline because of quake

April 5th, 2011 - 9:22 am ICT by IANS  

Los Angeles, April 5 (IANS) US trade with Japan may be adversely affected in the aftermath of the massive quake that hit the country last month, the Los Angeles Economic Development Corporation has said.

The Port of Los Angeles and the Los Angeles International Airport are expected to witness major declines in trade between the two countries starting later this month, Xinhua reported citing a corporation statement.

Tourism from Japan and foreign investment will also be hit hard, it said.

“The city itself has a very large amount at stake in this trade,” chief economist Nancy Sidhu said at a meeting.

Sidhu said the decline in imports from Japan would likely include automotive parts, computers, medical equipment and other hi-tech components.

Japan is the port’s number two trading partner, second to China, and accounts for 15 percent of the port’s total of $236 billion in annual trade.

About $35.3 billion in trade between Japan and the US passed through the Port of Los Angeles in 2010, according to officials.

Around 305,000 Japanese tourists visit the city each year, providing a significant chunk of revenue for the city’s general fund in the form of hotel and sales taxes.

Los Angeles area businesses owned and operated by Japanese companies account for about $2.6 billion in income for nearly 50,000 workers.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |