While it may take around a year for any decisions regarding specifics and terms to be reached, the proposed agreement will forge stronger military and economic ties between the UK and Japan and could mean billions for the defence industry in potential major defence projects investments.
Japan has been relaxing its self-imposed de facto ban on arms development and exports in recent months; officially, as a means to take an increasingly bigger role in global humanitarian missions, although analysts will be quick to point out that China’s meteoric economic and military expansion is one of Japan’s biggest considerations as well.
Prime Minister David Cameron secured the arms deal while on his tour of Asia. While the official duties indicate that he was looking to reinforce business relationships and open new trade opportunities in the region, an arrangement to foster bilateral defence cooperation has always been in his sights.
The opportunities that this deal presents are sure to delight and energise defence contractors on both sides of the globe in what is a clear example of shifting global power dynamics.