IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 31 Mar 2015 | Removal date: open ended
Still in force

Financial assistance in foreign market

On 31 March 2015 the Japan Bank for International Cooperation (JBIC) signed two overseas investment loan agreements totalling USD 490 million with Saudi Methacrylates Company. The loans fund the company's manufacturing and sales business of methyl methacrylate monomer (MMA) and poly methyl methacrylate molding (PMA) materials. The loan is intended to support Japanese Mitsubishi Rayon Co., Ltd. activities in Saudi Arabia focused on their investment in Saudi Methacrylates Company.
In this context the Bank stated that the loan is aimed at 'improving the international competitiveness of Japanese industries through financial support for the competitive MMA and PMA manufacturing and sales business, with Mitsubishi Rayon making most use of strongly cost competitive Saudi Arabian gas as raw material, utilities and infrastructure.'
 
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment loans.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

341 Basic organic chemicals
2942 Other organic compounds.
294200 Other organic compounds.
363 Semi-manufactures of plastics
3920 Other plates, sheets, film, foil and strip, of plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials.
392010 Of polymers of ethylene
392020 Of polymers of propylene
392030 Of polymers of styrene
392043 Containing by weight not less than 6 % of plasticisers
392049 Other
392051 Of poly(methyl methacrylate)
392059 Other
392061 Of polycarbonates
392062 Of poly(ethylene terephthalate)
392063 Of unsaturated polyesters
392069 Of other polyesters
392071 Of regenerated cellulose
392073 Of cellulose acetate
392079 Of other cellulose derivatives
392091 Of poly(vinyl butyral)
392092 Of polyamides
392093 Of aminoresins
392099 Of other plastics

Please report this page in case you detect an inaccuracy in its content.