Global Trade Alert

On 25 October 2015 the Japan Bank for International Cooperation (JBIC) signed a JPY 41.544 billion (USD 340 million) export credit line agreement with Uzbek Joint-Stock Commercial Bank ASAKA. The loan will finance the Uzbek Navoiyazot Joint-Stock Company's purchase of a fertilizer plant facility from Japanese Mitsubishi Heavy Industries, Ltd. and Mitsubishi Corporation. An additional loan amounting to JPY 69.24 billion (ca. USD 586 million) is provided by a number of private banks that the government agency Nippon Export and Investment Insurance is insuring.
In this context the Bank stated: 'JBIC's support for the export of the fertiliser plant by Japanese companies through this loan will help create business opportunities for Japanese companies in the oil and gas industry of Uzbekistan, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries.'
 
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.
 
Export credit lines
JBIC provides direct loans to overseas importers or export credit lines to foreign banks. Loans or credit lines are obtained if the loan finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to 'positively contribute to Japanese companies'. Further information can be found on the Bank's website under export 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.