Tokyo is considering setting up a Japanese version of the US Foreign Military Sales (FMS) program as it steps up efforts to become a major defence supplier, according to statements from Defense Minister Shinjiro Koizumi.
On 10 June a report in the Yomiguri Shimbun stated that the Japanese government was reviewing plans for a “Japanese style FMS (Foreign Military Sales)” program and other services to assist defence equipment exporters.
According to the report, the plans involve establishing an independent administrative agency that would coordinate public-private and cross-ministerial efforts to support exporters.
Key additional roles would involve setting up a centralised point of contact for foreign purchasers on behalf of domestic exporters, providing assistance for post-export maintenance and training, awarding funds to selected domestic industry entrants, and nationalising production lines to increase surge capacity, the article stated.
While the article provided fresh details, many of these points closely resemble recommendations made by the government-appointed Defence Industry Working Group in April.
These include calls for the government to establish a “Japanese-style FMS-like system” that engages multiple government agencies to support exporters in tasks including after-sales service.
When asked about the government’s position on a Japanese-style FMS program during a regular press conference on 12 June, Koizumi, who co-convened the Working Group, said that nothing has been decided yet while noting that his government is currently working with relevant government organs to examine concrete systems and measures to advance equipment transfers.
Japan began to step up state support for defence exporters after a lack of public-private cooperation was blamed in a review of Japan’s failed bid to sell Soryu-class diesel-electric attack submarines to Australia in 2016.
A new model of Cabinet-led, multi-ministerial coordination was subsequently implemented to support Mitsubishi Heavy Industries (MHI) successful bid for a contract to build Australia’s Sea 3000 General-Purpose Frigate (GPF).
Similar approaches have since been used to push a raft of new sales campaigns in the wake of the passing of the new equipment transfer guidelines, often with the office of the Minister of Defense (MoD) playing a leading role.
These include Koizumi lobbying to sell the country’s Mogami-class multi-purpose frigates to New Zealand at the sidelines of the Shangri-La Summit, coordinating with Philippines officials to plan the potential transfer of up to six of Japan’s retired Abukuma-class destroyer escorts and TC-90 training aircraft in two meetings in May, and meeting with Indonesia’s defence minister to discuss the potential sale of Asagiri-class destroyers in May and early June.
Indonesia’s Navy (TNI AL) Chief of Staff Admiral Muhammad Ali in addition recently revealed that Koizumi offered to sell his nation Mogami-class frigates and Taigei-class submarines during talks with Indonesia’s Defence Minister.
Koizumi also agreed to strengthen defence equipment cooperation with Vietnam during a meeting with the latter’s president Tô Lâm at the sidelines of the Shanri-La conference on 29 May.
While the task of assisting defence exporters has received growing government attention in the wake of the passing of new guidelines on equipment transfer, calls for Tokyo to develop a Japanese-style FMS date back over a decade, including appearing in a 2015 policy recommendation report from the conservative-leaning Japan Business Foundation (Keidairen), a 2018 document from the Matsushita Institute of Government and Management (MIGM), and a 2021 report from Fujitsu.