Japan establishes a new facility to support the 550 billion dollar trade agreement with America

On Friday, the Japanese Ministry of Finance announced plans to establish an investment facility at the Japan Bank for International Cooperation (JBIC) to support a USD 550 billion investment package with America, under a tariff agreement to strengthen bilateral economic relations.

The investment package will be financed through equity, loans, and loan guarantees from JBIC and Nippon Export and Investment Insurance (NEXI), supporting Japanese companies to expand overseas in strategic sectors such as automobiles and pharmaceuticals. The regulations regarding JBIC have been amended to expand investment in developed countries.

The US-Japan memorandum focuses on chips, metals, pharmaceuticals, energy, and shipbuilding, expected to be completed before January 2029. US Secretary of Commerce Howard Lutnick will chair the Investment Committee, managing the project and profit sharing—90% for America, 10% for Japan. This initiative supports US domestic manufacturing and infrastructure, while Japan benefits from low taxes and expanded agricultural-forestry-energy markets.