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: 22 Mar 2010 | Removal date: open ended
Still in force

Trade finance

On 22 March 2010, the Japan Bank for International Corporation (JBIC) signed a maximum USD 57 million export loan agreement with the Korea Development Bank (KDB). Through KDB, the loan will finance the Panamanian subsidiary of Korean SK Shipping Co., Ltd.'s purchase of two Japanese built 55,800-dwt bulk carriers from Japanese Sumitomo Corporation

In this context JBIC stated: '...this loan, which provides financing through KDB, will lead to supporting exports by Japanese firms and thereby contribute to maintaining and improving the international competitiveness of Japanese shipbuilders.'

Notably JBIC and KDB signed in September 2009 an agreement to expand trade activities between the two countries. See related measure. The JBIC press release does however not state if this measure is directly related.
 
Export loans
JBIC provides export loans to overseas importers or foreign banks. Such loans are obtained if it 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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890130 Refrigerated vessels, other than those of subheading 8901.20
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods

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