Japan Defense Export Policy
Japan’s revised export rules create new opportunities for U.S. defense companies to supply critical components, subsystems, and enabling technologies to Japanese primes who are certain to face significantly increased demand for exporting their defense systems. Japan’s defense industry has long relied on U.S. inputs for high-performance systems, and Japan’s shift toward export-oriented production is expected to increase the need for U.S. defense systems and sub-systems.
Japan has implemented new rules that broaden the scope of defense equipment and technology that the country may export. Japan’s significant policy change removes restrictions that had previously limited the country’s defense exports to five categories:
Rescue and relief
Transport
Early warning systems
Surveillance and reconnaissance and
Mine clearance
Japan has abolished these five categories and now classifies all defense exports as either “weapons” (warfare direct engagement systems such as warships and missiles) or “non-weapons” (non-direct engagement systems such as radars).
Japan’s National Security Council will ultimately decide whether to export weapons systems and will limit recipients of such weapons to countries with defense equipment and technology transfer agreements with Japan. Japan currently has such agreements with 17 countries, including the United States. While Japan will generally prohibit weapons exports to countries engaged in active armed conflicts, the new policy allows for exceptions based on Japan’s security needs. No such restrictions apply to Japan’s non-weapons exports.
U.S. defense companies should carefully consider engaging with Japanese trading firms and system integrators that maintain established relationships with Japan’s Ministry of Defense and domestic primes. Early positioning in supply chains, alignment with Japanese program requirements, and participation in collaborative projects can significantly enhance opportunities in Japan’s expanding defense industry market.
For more information, please contact the U.S. Commercial Service in Japan at Office.Tokyo@trade.gov.