Non-Subscriber Extract
Japanese military export ban stifling business, warns industry
By Jon Grevatt
08 February 2008
Japan's policy of prohibiting the export of all military equipment and related technology is stifling the development of the country's defence industry, Japan's leading business organisation has told Jane's .
The country's 'Three Principles' policy, which was introduced in 1967, states that export deals are not allowed to be signed with communist-bloc countries; countries subject to UN arms export sanctions; and countries involved in or likely to be involved in international conflicts.
The policy was updated in 1976 to include an export ban on all equipment related to the production of arms regardless of their destination, and again in 1983 to allow Japan to export some military technologies to the United States. The latter, according to the policy document, was agreed in order to ensure the effective operation of continuing Japanese-US security arrangements.
In recent years, however, the policy has been criticised by organisations representing industry on the grounds that it is viewed as out of date and not reflective of modern international programmes to develop military technologies. The Nippon Keidranren (Japan Business Federation), a body that represents 130 industrial associations in Japan - including defence companies - has been one of the policy's most vocal critics.
"We are insisting on a revision of the 'Three Principles' policy because it is limiting development opportunities for Japanese defence firms," a Nippon Keidranren spokesman told Jane's on 7 February.
"We [Nippon Keidanren] do not represent a few defence companies. Our official position is that we represent the total Japanese defence industry sector, and Japanese defence companies are saying to us that they want this policy changed to enable them to participate in more technology development projects with overseas companies."
A figure within the Japanese Ministry of Defence (MoD) told Jane's on 7 February that he believed the policy was unlikely to change. "This is government and political policy, not a commercial policy, and I don't believe that it will be changed in the near future. We are very careful and serious about the non-export of weapons."