The Japan Defence Agency's new export policy authorises the export of only three types of products on a case-by-case basis. The major exemption covers joint development of a new ballistic-missile defence system with the USA, and allows Mitsubishi Heavy Industries (MHI) to export divert-and-altitude-control systems, nose cones, second-stage rocket motors and guidance-control technology.
Other exemptions apply to anti-terrorist equipment and used aircraft or ships. Because the latter only covers aircraft that have been retired from Japanese service and are exported to Third World countries, the impact on aerospace manufacturers is expected to be minimal.
The main beneficiary of the new policy is MHI, which will work with Raytheon to develop a new-generation ship-to-air missile system. MHI's fast-expanding missile defence business is helping to offset declining sales of military aircraft, in particular a reduction in the procurement of F-2 fighters.
Other Japanese manufacturers, however, do not stand to benefit from Japan's ballistic-missile defence buying spree – expected to cost at least $1 billion a year over the next few years – because they do not have missile defence businesses.
Since 1999, Japan and the USA have been studying the feasibility of co-developing a new ballistic-missile defence capability and, late last year, agreed on a framework for co-operation, prompting the JDA to revise its strict export policy for the first time.
Industry sources say Japan and the USA are planning to fund development of a next-generation Raytheon Standard Missile-3 (SM-3) beginning in fiscal year 2006, with the goal of fielding the new weapon as early as 2010. MHI and Raytheon have until now been supporting the study phase of the project through separate contract with their governments.
During the production phase, direct ties between the two companies will be pursued, with MHI authorised to produce and export certain components.
Japan is currently purchasing SM-3s through US foreign military sales channels, and will continue to import current-generation missiles until FY2007. MHI, as Japan's designated missile defence contractor, has also been awarded a contract to produce Lockheed Martin PAC-3 missiles under licence.
As well as forcing Japan to rethink its export ban, ballistic-missile defence is also driving a transformation in Japan-US military relations. The two countries are now looking to improve military co-ordination by sharing a greater amount of intelligent information and opening a joint operations centre in Tokyo.
BRENDAN SOBIE/TOKYO
Source: Flight International