Japan, US To Quicken Investment Plans Under US$550 Billion Package

TOKYO, Feb 13 (Bernama-Kyodo) -- Japan and the United States agreed Thursday to speed up selection of the first round of investment projects under a US$550 billion package that Tokyo committed to last year following months of tariff negotiations, with a summit of their leaders about a month away.

Hours after his meeting with the US Commerce Secretary Howard Lutnick in Washington, Japanese industry minister Ryosei Akazawa told reporters a "significant gap" remained and more coordination was required to serve the mutual interests of the two countries, Anadolu Ajansi reported.

"In conducting negotiations, we are naturally keeping in mind the goal of making Prime Minister (Sanae) Takaichi's visit to the United States a fruitful one," he said.

Akazawa's meeting with Lutnick was believed to be part of last-ditch efforts to sort out the first batch of Japanese investment projects to be carried out in the United States before they are sent to President Donald Trump for final approval.

Although Akazawa, who serves as economy, trade and industry minister, said there was some progress, neither side could unveil any specifics. While refusing to elaborate, he suggested differences remained over interest rates and business risk assessments.

"In a nutshell, as far as we are concerned, high-risk, high-return (investments), given that they also involve taxpayers' money, are not something we are interested in," he said.

The meeting with Lutnick took place a week after Trump said he would welcome Takaichi to the White House on March 19.

Under a trade deal struck in July last year, Japan has committed to investing US$550 billion in the United States by the end of Trump's second term in January 2029, in exchange for his administration reducing tariffs on Japanese cars and other goods.

The massive figure represents a combination of investments, loans and loan guarantees from Japanese government-backed financial institutions.

Japan and the United States have agreed that the forthcoming investments will focus on strategic sectors, such as critical minerals, semiconductors, artificial intelligence and energy, to support their national security interests and economic objectives.

For the initial tranche of investments, the construction of gas-fired power generation facilities for data centres, the production of synthetic diamonds used in the semiconductor industry and the development of a port are among the leading candidates, according to Japanese officials.

The memorandum of understanding between Japan and the United States, signed by Akazawa and Lutnick in September last year, stipulates that Trump will ultimately select projects recommended by an "investment committee" chaired by the commerce secretary and composed solely of US officials.

Earlier in the process, the so-called consultation committee -- comprising officials from both countries -- is tasked with identifying potential investment projects.

The United States will forward investment projects that gain Trump's endorsement to Japan for review, with Tokyo given 45 days to respond and transfer the necessary funds to Washington.

Akazawa represented Japan in its tariff negotiations with the United States under Takaichi's predecessor, Shigeru Ishiba, travelling to Washington 10 times through September.

He was then minister for economic revitalisation. This is his first visit to Washington since assuming his current post, which he assumed after Takaichi became Japan's first female prime minister in October.

-- BERNAMA-KYODO