Recent statements by Japan's chief negotiator Ryosei Akazawa shed light on the details of the $550 billion agreement with the US.
Investment Amount and Funding Structure
Japan has stated that only 1-2% of the $550 billion package constitutes real investment, while the majority will come through loans and guarantees. This raises certain concerns among experts and the populace.
Revenue from Loans and Guarantees
Akazawa emphasized that Japan could earn interest from the loans provided and collect fees for the guarantees issued. "Japan's loss will be at most a couple of tens of billions of yen, but the overall agreement will be beneficial," he said.
Tariffs on Automobiles and Experts' Forecasts
Though tariffs on Japanese automobiles have been reduced from 25% to 15%, many analysts warn that the remaining duties could still hinder exports. This agreement is expected to serve as a blueprint for future trade agreements.
The Japanese agreement with the US evokes mixed feelings among politicians and citizens, while experts point to many factors influencing economic cooperation.
