Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

12:14 to 12:33 p.m.
Friday, December 19, 2025
Press Conference Room, METI Main Building

Opening Remarks

Clean energy vehicle (CEV) subsidy program

Regarding the clean energy vehicle subsidy, or so-called CEV subsidy, which supports the purchase of CEVs including electric vehicles (EVs), METI has reviewed the maximum subsidy amount for eligible EVs and fuel cell vehicles (FCVs), taking into account the agreement reached in the Japan-U.S. tariff negotiations. Specifically, measures such as raising the maximum subsidy for EVs from 900,000 yen to 1.3 million yen and lowering the maximum subsidy for FCVs from 2.55 million yen to 1.5 million yen will, in principle, apply to vehicles newly registered on or after January 1.

I would like to briefly mention here that the European Commission recently announced a proposal to revise CO2 emission regulations, which effectively banned the sale of internal combustion engine vehicles after 2035. I believe you are all aware of this. I understand this represents a shift to a more realistic approach that aims to achieve carbon neutrality while avoiding the loss of industrial competitiveness. I believe that such a trend suggests that Japan's long-standing multi-pathway strategy in the automotive sector, which pursues diverse options including not only EVs but also hybrids, is an excellent policy in terms of both decarbonization and strengthening industrial competitiveness. In order for Japan's automobile industry to continue to lead the world, we intend to continue to take a balanced approach under this multi-pathway strategy.

Call for Increased milk consumption in winter

Allow me to take a moment to promote the milk from my home prefecture. Today I have White Rose Milk from Tottori, my home prefecture. White Rose Milk is produced by Daisen Nyugyo Dairy Industry Cooperative. It was quite a while ago, I think it was in the May 2018 issue of Shukan Bunshun weekly magazine, in which the milk was featured under the headline “Japan’s No. 1 Youth-Preserving Milk is Found in Tottori Prefecture.” To put it simply, milk is delicious, highly nutritious, and in the case of White Rose Milk, it also has anti-aging properties, so I recommend it. The directions say to drink it here, so I'd like to have some. I will drink it now. There isn’t any special posture for drinking milk, but I'd like to put my hand on my hip. It's delicious. Did you manage to get the shot? Are you sure? You don’t often get a chance to shoot something like this, thanks. I really love milk myself. I want to support dairy farmers by taking the initiative to drink milk and eat yogurt. I also want to encourage consumers to try milk. It’s delicious on its own, and especially in this cold season, it is also well suited for hot milk or for dishes made with milk or yogurt, which are said to be good for your health. Dairy farmers are currently facing a very difficult business environment, with rising prices for materials and feed costs, among other issues, and of course, I want to support dairy farmers with all my might, as an LDP lawmaker specializing in agricultural policy. But above all, I want consumers to know that milk is delicious and provides good nutrition. In addition, I want to promote White Rose Milk once again: the milk from Tottori, my home prefecture, is known for its excellent anti-aging properties, and was featured once in an article of the Shukan Bunshun weekly magazine. I would be extremely grateful if you could keep this in mind and help us increase milk consumption.

Question-and-Answer Session

Japan-U.S. Consultation Committee on the Strategic Investment Initiative

Q: I would like to ask you about investment in the United States. Yesterday, the Japanese and U.S. governments held the first meeting of the Consultation Committee on the Strategic Investment Initiative. This is based on the agreement reached in the tariff reduction negotiations that you were in charge of. Could you share your view on this first meeting? I believe that the scope of investment projects in the United States will be narrowed down in the future. The fact sheet released in October listed energy and AI infrastructure, but as the Minister, what areas would you like to prioritize in the discussions?

A: First, I would like to touch on one thing you just said, that I was in charge of negotiations with the United States. You said it in the past tense, but under the instructions of Prime Minister Takaichi, there are currently three ministers in charge of Japan-U.S. negotiations on tariffs, or the Japan-U.S. tariff agreement. To put it simply, Foreign Minister Motegi oversees the negotiations, and I am involved in negotiations with the U.S. side regarding the implementation of the Japan-U.S. tariff agreement. Minister Kiuchi is basically responsible for implementing, or rather, for executing the domestic measures associated with the Japan-U.S. tariff agreement, and if new measures need to be taken, he basically takes the lead. Under the previous administration, I was the only one in charge, but now the number of ministers in charge has increased to three. I want to be clear that I remain in charge.

Regarding your question about the Consultation Committee, an online meeting of the Consultation Committee on the Strategic Investment Initiative was held yesterday between the Japanese and U.S. governments.

The U.S. Department of Commerce and the Department of Energy participated in the meeting, while Japan's Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Economy, Trade and Industry, along with the Japan Bank for International Cooperation (JBIC), and the Nippon Export and Investment Insurance (NEXI), also took part. I have been briefed that the participants exchanged views on projects that could be the subject of the investment initiative and confirmed that they will continue to work closely together to develop such projects.

The question was my view on the first meeting. I myself negotiated various points directly with President Trump on July 22 and we reached a deal. Following that agreement, an Executive Order was issued on September 4 to reduce Japan's tariffs, and a joint statement was also issued.

We have consistently been moving forward with the implementation of the agreement reached on July 22, and have also articulated that Japan and the United States, as special partners, will develop their economic relations, ensure economic security, and build a golden age for the Japan–U.S. alliance. This commitment was underscored when the President visited Japan and signed relevant documents with Prime Minister Takaichi. Furthermore, building on this progress, additional documents were signed regarding critical minerals.

In that sense, regarding the Japan–U.S. tariff agreement reached with the United States on July 22, we recognize each other as special partners. I told the U.S. side that we would implement it swiftly and faithfully, although the original phrasing puts the two words in the opposite order. Secretary of Treasury Bessent and others liked that expression, and as a result, I believe we are now firmly in the process of implementing the agreement faithfully and swiftly. I personally see this as very positive progress.

Regarding the question about potential projects, there is truly a wide range of possibilities that could fall under the investment initiative. The only overarching criterion is that they must be in areas important for economic security. While I have mentioned eight or nine commonly cited fields, the scope is not limited to those. I have been informed that we are currently at the stage of exchanging views on various potential projects, and at this point it would be premature to comment based on speculation about when and what specific projects might be formed.

In fact, when President Trump visited Japan, Secretary of Commerce Lutnick, who accompanied him, gathered Japanese companies and released a fact sheet that briefly summarized both sides’ views on the various potential project areas. I have no doubt that the items listed in that fact sheet are being considered as strong candidates. However, beyond that, I do not believe there is much more I can say at this stage.

U.S. Treasury Department extends a waiver on the Sakhalin-II project transaction

Q: I would like to ask you about the Sakhalin-II project. On December 17, the U.S. Department of the Treasury decided to extend the deadline for the waiver of the Sakhalin-II transaction by six months, until June 18 of next year. First, how do you view this decision?  Could you share your view on the significance of the fact that procurement from the Sakhalin-II project can continue?

A: As a result of our efforts to explain the importance of the Sakhalin-II project to Japan's energy security and our careful explanations to the United States and other G7 countries, I believe that Japan's position is now being understood. Consequently, I understand that the exemption for the Sakhalin-II project from U.S. sanctions has now been appropriately extended. Securing LNG from overseas, including through the Sakhalin-II project, is extremely important for Japan's energy security, and we will continue to work closely with the international community, including the G7, to take all possible measures to ensure that there are no disruptions to the stable supply of LNG to Japan.