Japan expects only 1% to 2% of its recently agreed upon $550 billion U.S. fund to be in the form of actual investment, with the bulk of it being loans, according to the nation’s chief tariff negotiator, Ryosei Akazawa.
At the same time, Tokyo would save roughly ¥10 trillion ($68 billion) through lower tariff rates in its deal with the United States, he said.
The $550 billion investment framework will be a combination of investments, loans and loan guarantees provided by financial institutions backed by the Japanese government, Akazawa said on public broadcaster NHK on Saturday night. Of the total, investment would be worth 1% or 2% and the United States and Japan would split the profits of that investment at a ratio of 90-to-10, he said. Japan had originally proposed a 50-50 ratio, he added.
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