Until now, Japanese defense manufacturers’ only customer has been the Japanese government – which has led to a lack of market discipline in the industry. Japan’s defense sector is a world of its own, with their own rules.”On October 2, The Diplomat covered the significant policy shift in Japan’s defense posture, through the lifting of Japan’s arms embargo. Stephen Ganyard, President of Avascent Global Advisors, commented on this significant shift, as Japan looks to exports arms.
“This past April, Japanese Prime Minister Shinzo Abe lifted Japan’s arms embargo and established the “Three Principles on Transfer of Defense Equipment and Technology,” which allows Japan to export arms after proposals go through a rigorous screening process to ensure that the sale would promote international peace and Japan’s security. Even though the move to export arms has not garnered nearly as much attention nor controversy as Abe’s other security initiatives, this is a significant change in Japan’s defense posture.
Fast-forward a year and a half — Japan’s Ministry of Defense (MOD) created the 1,800-person strong Acquisition, Technology, and Logistics Agency (ATLA) on October 1 of this year to deal with many of the practical challenges that remain to implement this new export policy. A staff of 50 within ATLA will be dedicated specifically to arms export promotion.”
Click here to read the full article: “The Trouble With Japan’s Defense Exports.”