TOKYO: Japan’s military looks to raise spending over the next five years in response to security challenges and to narrow Japan’s trade surplus with the United States by buying U.S. equipment, the Nikkei business daily reported yesterday.
The Ministry of Defence looks to spend at least 27 trillion yen ($240 billion) between April 2019 and March 2024, with the spending rising an average 1.1 percent per year, exceeding the 0.8 percent average during the five years ending next March, the report said without identifying its sources.
Currently, payments on equipment and personnel expenses account for 80 percent of defense spending, Nikkei said. Under the plan, funds for new equipment purchases will be separated from these expenses, making it easier to buy equipment from the United States, it added.
Japan aims to have cabinet approval for the spending in mid-December, it said. The Ministry of Defence could not be reached immediately for comment.
Purchases of American-made equipment could help Tokyo ease trade friction with Washington as U.S. President Donald Trump pushes Japan to buy more American goods, including military gear, while threatening to impose tariffs on Japanese auto imports to cut a trade deficit with Tokyo. —Agencies