Article 9 of the Japanese Constitution prohibits the existence of Japanese military forces. Japan has a treaty of mutual cooperation and security with the United States, which commits the US to defending Japan. Because of an ongoing moratorium on the export of weapons abroad, Japan’s defence industries are suffering under the effects of limited collaboration opportunities and limited markets for their products. However, the Japanese Government is exploring ways of opening up new markets for Japanese defence companies as well as loosening the constitutional restrictions on Japan’s military.
Until April 2014, Japan’s export policy prevented the export of military goods to any foreign country. Similar restrictions were applied to military technology, such as that associated with the design, production, and use of arms, the recent trends as more international agreements were signed, paved the way to the lift of the ban on the export of military goods achieved this April.
In recent years, the private security sector has become increasingly important and is emerging as a major player in the economy. In this report, we will also try to define which activities are covered by the private security industries, why this sector is growing, as well identifying the opportunities and the strengths of the Japanese market.
Reference: EU BUSINESS IN JAPAN