weighted score 1.7 · nine dimensions
Country Risk Profile
Japan
Sourcing risk, regulatory exposure and audit intelligence for Japan-origin supply chains.
Forced & child labour
1
Zero TVPRA listings. No documented forced labour in any manufacturing sector. Strong labour law enforcement. ILO core conventions ratified and enforced.
Worker rights & FOA
2
ITUC Global Rights Index rating 2 — few violations. Strong union framework. Freedom of association protected by law and in practice.
OHS & audit transparency
2
Excellent OHS legislative framework with strong enforcement. Very low fatal injury rates in manufacturing. High audit transparency.
Food & product safety
1
Among the world's strongest food safety systems (MHLW). Negligible RASFF alert rate. Standards frequently exceed EU requirements.
Environmental & regulatory
2
EUDR low-risk classification almost certain. No IUU fishing issues. Excellent CITES compliance. Strong environmental governance and enforcement.
Governance & anti-corruption
2
TI CPI 2024: Japan scores 73/100 — well above the 60 threshold. Strong independent institutions. Reliable official certifications and documentation.
Tariff & preferential access
2
EU-Japan EPA (February 2019) provides comprehensive tariff elimination on ~99% of goods. Among the strongest EU preferential trade agreements.
Non-tariff barriers
1
No enhanced import controls. No sanctions exposure. Efficient customs clearance. Minimal border friction for EU trade.
Supply chain traceability
2
Strong documentation culture. High EcoVadis and ISO coverage. Formal economy dominates. Keiretsu structure can add some tier-2 opacity.
Labour & Social Risk
Labour & Social Risk
- Labour standards
- Japan has comprehensive labour protection legislation. The Labour Standards Act, Industrial Safety and Health Act, and Equal Employment Opportunity Act provide a robust framework. Enforcement is strong and consistent.
- Technical Intern Training Programme
- Japan's TITP has faced international criticism for labour exploitation of foreign trainees, particularly in agriculture and construction. In 2024, Japan announced replacement of the programme with a new system designed to address documented abuses. Manufacturing exposure is lower than agriculture.
- ILO ratification
- Japan has ratified all eight ILO fundamental conventions. Core labour standards are embedded in domestic legislation and consistently enforced.
EU Regulatory Exposure
EU Regulatory Exposure
- EU-Japan EPA
- The Economic Partnership Agreement eliminates tariffs on approximately 99% of EU imports from Japan. Rules of origin are well-established and achievable for most product categories.
- EUDR exposure
- Japan does not produce or export EUDR-regulated commodities (soy, palm, cocoa, coffee, cattle, rubber, timber) at any scale. EUDR exposure is effectively zero.
- CBAM
- Japan's steel and aluminium exports to the EU are subject to CBAM declarations from 2026. Japan's industrial carbon intensity is relatively low compared to China or India, reducing the effective CBAM burden.
- Overall compliance position
- Japan presents the lowest EU compliance risk of any country in this index. Strong institutions, mature regulatory framework, and comprehensive bilateral trade agreement make Japan a low-friction sourcing origin for EU buyers.