US-Japan Defense Cost-Sharing Talks Likely Extended for 1 Year... US-South Korea Deal Also Nearing Agreement (Comprehensive)

Kyodo News Negotiation Status Report
Japan Agrees to Roughly One-Year Extension at Current Level
State Department "Also Working to Conclude Agreement with Han"

Fists clenched, Abrams and Kim Seung-gyeom exchange 'Joint Lunar New Year Greetings'... "Let's go together"
[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Reports have emerged that the United States and Japan have agreed to maintain the current level of defense cost-sharing without a significant increase. Although the U.S. State Department maintains that negotiations have not yet been finalized, expectations are growing that the South Korea-U.S. defense cost-sharing talks will also conclude quickly.

On the 10th (local time), Japan's Kyodo News reported that the U.S. and Japan have roughly agreed to extend the current agreement on the cost-sharing for the U.S. military presence in Japan for one year.

According to this agreement, Japan will bear approximately 200 billion yen (1.91 billion dollars, about 2.1 trillion won) for the 2021 fiscal year, which is nearly the same level as last year, and official agreement is expected soon, sources said. This is a significant difference from the 8 billion dollars, four times the current level, that former U.S. President Donald Trump had demanded from Japan.

Negotiations between the U.S. and Japan had stalled due to large differences in views and failed to reach a compromise, but talks resumed on the 2nd after the inauguration of the Joe Biden administration.

The U.S. State Department stated that negotiations have not yet been concluded but appeared hopeful for a resolution. In response to Asia Economy's question about the status of the negotiations, a State Department spokesperson said, "We are working to advance negotiations with Japan," explaining that the U.S.-Japan relationship is a cornerstone for peace, stability, and freedom in the Indo-Pacific region.

With the South Korea-U.S. Special Measures Agreement (SMA) negotiations also restarting, a resolution is expected following Japan. The Ministry of Foreign Affairs announced on the 5th that the 8th meeting for the conclusion of the 11th SMA between South Korea and the U.S. was held via video conference.

When asked about the progress of defense cost-sharing negotiations with South Korea, the State Department spokesperson said, "The U.S. and South Korean negotiation teams are working to promptly conclude the SMA to strengthen the South Korea-U.S. alliance and combined defense posture."

South Korea and the U.S. have been negotiating the 11th SMA since 2019, but due to significant differences, talks were at a standstill until before the Biden administration took office. Former President Trump reportedly demanded South Korea pay 5 times the existing amount, or 5 billion dollars.