Akazawa: Want to make sure PM Takaichi’s US trip is fruitful

Akazawa: Want to make sure PM Takaichi’s US trip is fruitful

Akazawa: Want to Make PM Takaichi’s U.S. Trip Fruitful

Japanese Trade Minister Ryosei Akazawa emphasized the importance of finalizing key projects under the U.S.-Japan $550 billion investment framework ahead of Prime Minister Sanae Takaichi's scheduled March visit to Washington. Despite ongoing negotiations, Akazawa acknowledged "a significant gap remains" in aligning priorities with U.S. Commerce Secretary Howard Lutnick, though progress has been made in recent discussions.

The first phase of the agreement has now been announced, with Japan committing $36 billion to three U.S. projects: a natural gas plant in Ohio led by SoftBank's SB Energy, a Gulf Coast crude oil export terminal, and a synthetic diamond manufacturing facility in Georgia according to reports. These investments, described by U.S. officials as critical for energy security and industrial resilience, are part of a broader trade pact that reduced U.S. tariffs on Japanese exports to 15% from initially threatened higher rates.

Akazawa stressed that Japan seeks "safe returns" rather than high-risk ventures, with funding structured to ensure predictable returns for Tokyo while bolstering U.S. infrastructure. The projects are expected to generate thousands of jobs and enhance supply chains in energy, critical minerals, and advanced manufacturing as reported.

However, Japanese business and financial circles have raised concerns about the deal's long-term viability. A leading think tank, the Nomura Research Institute, labeled the arrangement "extremely unequal," citing uncertainties about economic benefits for Japan. State-backed institutions like the Japan Bank for International Cooperation will provide loans and guarantees, raising questions about potential taxpayer exposure if projects underperform according to analysis.

The timing of the announcement aligns with Takaichi's political priorities, including her recent reconfirmation as prime minister and a planned U.S. visit to solidify bilateral ties. U.S. President Donald Trump has praised the agreement as a "win-win," framing it as a cornerstone of his "America First" economic strategy.

While the initial projects mark a step forward, Akazawa noted that broader negotiations on the $550 billion fund remain complex. The minister aims to ensure Takaichi's trip achieves tangible outcomes, balancing domestic economic concerns with strategic alignment with Washington according to Bloomberg reporting.