Ryosa Akazawa, chief negotiator, said that actual investments will not exceed 2 percent of the total funds that Japan pledged to pump into the US economy worth $ 550 billion, while the bulk of the funds will be in the form of loans or loan guarantees.
Bloomberg News Agency reported that Japan will provide nearly 10 trillion yen ($ 68 billion) by reducing customs tariffs in its agreement with the United States.
Akazawa said in an interview with the Japanese Public “NHK” radio that the $ 550 billion investment framework will be investments, loans and loans provided by financial institutions supported by the Japanese government. Investments will be in the range of 1 and 2 percent of the total agreed financing fund value, and the profits of this fund’s investment will be divided by 90 percent for the United States and 10 percent for Japan, adding that Japan was proposing the division of profits equally.
The fund is the cornerstone of the agreement announced by the two sides, which will impose customs duties by 15 percent on Japanese cars and other commodities. But the details made by Akazawa indicate that the Japanese may eventually waive much less than what may appear at first glance.
These comments come at a time when officials from the countries that have agreements with the United States are undertaking a careful study of the conditions to explain what it contains to the public.
“The agreement does not mean sending 550 billion dollars in cash to the United States,” Akazawa said. By granting the United States 90 percent of profits instead of 50 percent, I think the loss of Japan will only be several billions of yen at most … but people say different things, such as (I have gone up Japan), but they are wrong. ”
“As for the loans provided through the program, Japan will simply get interest payments, and for loan guarantees, if nothing happens, Japan will also get the fees only … in this part, Japan only earns money.”
In conjunction with Akazawa’s comments, Japanese Cabinet Secretary Yoshimasa Hayachi said on Monday that the recent trade agreements between the United States and the European Union, as well as between the United States and Japan, reduce the uncertainty surrounding American commercial policy.
Hayachi, a government spokesman, added that the decline in uncertainty would reduce the risk of American commercial policy negative pressure on Japan and global economies.
The Japanese position on the agreement with the United States comes amid an escalating crisis in Tokyo, as Japanese Prime Minister Shikiro Ishiba announced that he intends to stay in office, despite increasing calls within the ruling party to resign after a setback in the elections last week.
“I intend to devote myself to the people and the future of the country,” Ishiba said in an interview with the Radio and Television Corporation (NHK), according to Sunday. He added that he must bear the responsibility for implementing the trade agreement between the United States and Japan, which was recently announced and that the real work on it begins now.
Ishiba is scheduled to talk to a meeting of legislators from the liberal Democratic Party at a later time. The party members called for responsibility for the elections that took place on July 20, which witnessed the loss of the liberal Democratic Party for the majority of it in the elections of the Japanese House of Advisors.
That is the first time since 1955, that a legendary Japanese leader has ruled without a majority in at least one of the legislative bodies.
In the markets, the Japanese Nikki index changed its course to conclude the session on a decline on Monday, with investors reaping profits after a rise recently and turned their focus into the profits of local companies.
The Nikki index fell 1.1 percent to close at 40998.27 points, after 0.2 percent earlier in the session. The broader Topics index fell 0.72 percent to 2930.73 points.
“Investors have sold stocks to earn profits from a recent rise in, This is the brief answer to explain today’s decline … but they sold the shares because they jumped last week, and they were concerned that companies’ profits may not justify the current level of stocks.
