Press Conference by Minister Akazawa (Excerpt)

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

12:25‒12:47 p.m.
Friday, March 13, 2026
Press Conference Room, METI Main Building

Opening Remarks

Cabinet decision on the bill to partially amend the Industrial Technology Enhancement Act

Today, the Cabinet approved the bill to partially amend the Industrial Technology Enhancement Act. Japan has entered an era of close coordination between science and business, in which research and development (R&D) results are rapidly implemented in the real world. Amid intensifying global competition in innovation policy, the Government of Japan needs to identify strategically important technologies and provide targeted support for their R&D. To this end, the bill designates key industrial technologies and seeks to encourage R&D related to them by establishing a system that certifies relevant corporate R&D plans and research institution R&D sites. In addition, we will conduct various initiatives, including offering special tax measures for R&D based on certified plans. The administrative staff will explain the details later.

Question-and-Answer Session

Release of oil stocks due to the situation in Iran

Q: I would like to ask you about the situation involving the Islamic Republic of Iran. Prime Minister Takaichi stated on March 11 that the Government of Japan will release approximately 80 million barrels from its petroleum reserve as part of a collective effort and will reinstate gasoline subsidies. In addition, the International Energy Agency (IEA) member countries agreed on the same day to implement a collective release totaling 400 million barrels. Some see these measures as only having a limited effect on relieving supply concerns. May I ask you to explain the significance and purpose of these measures? Please also share the plans and outlook regarding the release of oil stocks.

A: As the Strait of Hormuz continues to be virtually impassable for oil tankers, Japan’s imports of crude oil are expected to drop significantly from late March. Therefore, following the Prime Minister’s instruction, the Government of Japan will make a head start by releasing its reserves on Monday, March 16, in coordination with G7 member countries and the IEA, to ensure that no disruptions arise in the supply of petroleum products under any circumstances. First, we will release 15 days’ worth of privately held reserves on the 16th, and then one month’s worth of national reserves in late March. Regarding the collective release of oil stocks announced by the IEA on Wednesday, March 11, we will coordinate the allocation of the release volumes and timing. Furthermore, given that crude oil prices soared to 120 dollars per barrel this week, we decided to immediately carry out emergency measures to curb dramatic price fluctuations, as instructed by the prime minister, so as to adamantly protect the livelihoods and the economic activities of our citizens. We will utilize the Fuel Oil Price Stabilization Fund to start providing subsidies from Thursday, March 19, to cap the retail prices of gasoline at around 170 yen on average across Japan. Comparable support will be provided for diesel oil, heavy oil, and kerosene, and aircraft fuel will receive assistance equivalent to 40% of the gasoline level. We will continue to take all possible measures to ensure Japan’s stable energy supply while keeping a close watch on the economic impact of the situation in the Middle East, and take the necessary measures with agility to minimize the impact on people’s livelihoods and economic activities. At the same time, we will urgently set up a contact point for the public to provide information to the government in case supplies of fuel oil, petroleum products, and so forth are affected. We will provide details on a separate occasion.

Section 301 of the U.S. Trade Act 1974 of the United States of America

Q: I would like to ask about the tariff measures of the Government of the United States. The United States Trade Representative (USTR) initiated investigations under Section 301 of the U.S. Trade Act of 1974. Japan is also expected to be subject to investigations into excess production capacity in the manufacturing sector, which could result in additional tariffs. On your recent visit to the United States, you asked U. S. Secretary of Commerce Howard Lutnick not to implement additional measures under Section 301 beyond the Japan-U.S. agreement. What are your thoughts on Japan being subject to USTR investigations, and what measures do you intend to take?

A: I am aware of the announcement you referred to. At this point, we cannot predict the measures to be taken by the Government of the United States, but I understand that U.S. Trade Representative Jamieson Greer stated that the existing trade agreements between Japan and the United States are and will remain valid, and that the United States intends to abide by them. In addition, in a meeting with Secretary Lutnick, I also reaffirmed that last year’s Japan-U.S. agreement would continue to be implemented by both countries, and requested again that the treatment of Japan not be less favorable than that under last year’s agreement between the two countries with respect to the measures under Section 301. That said, the Government of Japan plans to steadily implement last year’s Japan-U.S. agreement, which will help promote the mutual interests of the two countries, ensure economic security, and foster economic growth, and will also continue to request that the Government of the United States also do the same. The essential point to note here is that Japan and the United States have reached an agreement recognizing each other as special partners and are striving to move forward under it.

Diversification of crude oil procurement sources

Q: In relation to crude oil, the other day at the National Diet, Prime Minister Takaichi spoke of Japan’s efforts to diversify its sources of fossil fuel procurement. Will Japan, for example, ask the United States, the world’s largest oil producer, to increase its exports to Japan? What initiatives, if any, are you implementing to diversify procurement sources, including providing support to the private sector?

A: My recognition is that private businesses are exploring alternative procurement sources without ruling out any options. Specifically, I understand that their procurement options that use pipeline routes as alternatives to the Strait of Hormuz include the United States, which as you noted has a strong supply capacity, the Kingdom of Saudi Arabia, and the United Arab Emirates (UAE). In addition, I hear they are also considering procurement from Central Asia and South America, which have track records of supplying oil to them, and have room to increase production. The Government of Japan will work in unity with private businesses to make every effort to secure alternative sources of procurement.

Japan-US Strategic Investment Initiative

Q: The schedule for the Japan-U.S. summit is about to be finalized, so I would like to additionally ask about investments in and loans to the United States. How far have you progressed in determining the second batch of projects under the Japan-U.S. Strategic Investment Initiative? Could you tell us whether display factories are included?

A: I am aware of the various media reports on the Japan-U.S. Strategic Investment Initiative, but I would like to refrain from commenting on the timing or specific projects, as such discussions would be speculative. When it comes to actual implementation, each project requires careful examination, including profitability assessments based on cash flow. The timeframe for reaching a level acceptable to all stakeholders also needs to be decided, so we are not in a position to draw conclusions at this stage.