US and Japan Tentatively Agree to 1-Year Extension of US Forces Japan Stationing Cost-Sharing Agreement

In November last year, the US military and the Japan Self-Defense Forces conducted the annual joint military exercise 'Keen Sword.'
Photo by Yonhap News

[Asia Economy Reporter Woo Su-yeon] The United States and Japan have agreed on a plan for Japan to bear the cost-sharing for U.S. forces stationed in Japan for the 2021 fiscal year. The two countries are reportedly leaning towards extending the existing U.S.-Japan Special Measures Agreement on Defense Costs, which expires this March.

According to Kyodo News on the 31st, Japanese Foreign Minister Motegi Toshimitsu explained the plan to provisionally extend the special agreement for one year during a phone call with U.S. Secretary of State Antony Blinken on the 27th.

During the U.S.-Japan working-level talks, the Japanese side also presented the same proposal, and the U.S. side reportedly expressed support. Multiple Japanese government officials stated that the two countries will resume working-level talks this week to push for an early agreement.

The cost-sharing for U.S. forces in Japan is determined based on the U.S.-Japan Special Measures Agreement on Defense Costs, which is revised every five years. The current agreement is set to expire this March. Although negotiations began in November last year, the change in the U.S. administration delayed substantive agreement until after the transition.

Experts expect that if the cost-sharing for the 2021 fiscal year is decided according to the existing agreement, it will not significantly exceed the budget range set by the Japanese government. The Japanese government reflected 201.7 billion yen (approximately 2.15 trillion won) for the U.S. forces cost-sharing in the 2021 fiscal year budget proposal, which is about a 1.2% increase compared to the previous year.

The Japanese government plans to finalize negotiations with the U.S. by next month and obtain parliamentary approval for the budget proposal in March.

This content was produced with the assistance of AI translation services.