TOKYO – In a dramatic shift from its post-war pacifist stance, Japan is rapidly stepping onto the international defense market, pursuing arms exports that were once considered a political taboo. This strategic pivot is highlighted by two recent landmark agreements that underscore Tokyo's new ambitions as a global defense player.
In recent months, Japan has agreed to supply six warships to the Philippines and has signed a major deal with Australia to co-develop a new class of frigates based on Japan's advanced Mogami-class design. These moves signal how far the nation has come in moving beyond the constraints that have defined its security policy for decades.
A Historic Policy Shift
For decades, Japan strictly prohibited arms exports under its "Three Principles on Arms Exports," first announced by Prime Minister Eisaku Sato in 1967. This framework effectively banned the sale of lethal weaponry abroad. These restrictions were significantly eased in 2014 under Prime Minister Shinzo Abe, when Tokyo replaced the old rules with the "Three Principles on Defense Equipment Transfer," permitting broader international cooperation and development.
The latest decisions reflect a major evolution from these post-war limitations. For the first time, Japan will provide escort vessels—classified as destroyer escorts but equipped comparably to frigates or small destroyers—to another nation.
The Philippine Deal: A Creative Workaround
Under the agreement, Manila will receive six retired Abukuma-class vessels from the Japan Maritime Self-Defense Force (JMSDF). Although compact and lacking a helicopter hangar, these ships are armed with Harpoon anti-ship missiles, ASROC anti-submarine rockets, a 76mm rapid-fire cannon, and torpedo tubes. Defense photojournalist Tetsuya Kakidani noted that despite their age, the Abukuma-class ships have been exceptionally well-maintained.
“This is a bargain for the Philippines,” he stated, as Manila will only cover the inspection and refurbishment costs of approximately 10 billion yen ($64 million USD).
To circumvent Japan's legal restrictions, Tokyo will dismantle the ships' original weaponry and refit them with communications equipment and other systems specific to the Philippines. Officials argue that such modifications allow the deal to be classified as a "co-development" project rather than a direct export of armed vessels.
The Australian Partnership: A High-Tech Venture
Simultaneously, Canberra has selected Japan as its partner for its next-generation frigate program. Australia announced it will use Mitsubishi Heavy Industries' Mogami-class multi-mission frigate as the base design. Each vessel is estimated to cost around 86.3 billion yen ($550 million USD), with the entire project valued at nearly 950 billion yen ($6 billion USD).
Japan's proposal triumphed over competitors from Germany, South Korea, and Spain. Analysts attribute Tokyo's advantage to the Mogami's reduced crewing requirements, advanced stealth features, and 32 vertical launch missile cells—features highly attractive to the Royal Australian Navy as it struggles with personnel shortages and the need to replace aging ships.
Unlike the Philippine deal, the Australian program clearly falls under the co-development rules, permitting Tokyo to transfer fully armed vessels. The first contract is expected to be signed early next year, with deliveries slated to begin in 2029.
Challenges and Industrial Context
These moves mirror the rapid rise of South Korea in the global arms industry. Over the past decade, Seoul's defense exports have surged from roughly $3 billion annually to over $17 billion in 2022, with major contracts for howitzers, tanks, aircraft, and missile systems. While Japan is just beginning its expansion, its industrial capacity and advanced shipbuilding sector position it as a formidable competitor.
Japan's shipbuilding industry recently consolidated with Imabari Shipbuilding's acquisition of Japan Marine United. The merger created the world's fourth-largest shipbuilder by tonnage, strengthening Japan's ability to support naval programs for the United States and its allies. Analysts note that U.S. Navy maintenance work is already being outsourced to Japanese shipyards due to labor shortages in the U.S.
However, challenges remain. Retired JGSDF Lt. Gen. Ryu Futami argued that Japan should focus on exporting specialized non-lethal military vehicles, using modifications to qualify them as co-development projects. Similarly, defense consultant Shoichi Suyama warned that Japan lacks a system equivalent to the U.S. Foreign Military Sales (FMS) framework, which guarantees long-term maintenance and logistics. Without robust government backing, Japanese companies bear the full responsibility for after-sales service, a burden that could limit their competitiveness.
Despite these hurdles, Japan's defense industry is on a clear upward trajectory. By securing deals with both the Philippines and Australia, Tokyo has crossed an arms export threshold that was unimaginable just a decade ago. Analysts say this shift reflects not only a change in legal interpretation but also a growing demand from allies for reliable alternatives to Chinese and Russian equipment.
