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ECONOMY > Agriculture

Trade and investment insurance agency to support export of domestic lumber

  • February 20, 2017
  • , Nikkei , p. 3
  • JMH Translation

Nippon Export and Investment Insurance (NEXI) will support the export of domestic timber. It will soon extend export insurance to the Ehime Forest Association, which exports building materials to China and South Korea. This will be the first time for NEXI to offer such insurance to a forestry union. The government has set the goal of increasing timber and other forest product exports to 25 billion yen – slightly over twice the 2012 export volume – by 2019. Through its insurance activities, NEXI will support the expansion of forest exports.

 

NEXI launched export insurance operations for the agricultural, forestry, and fisheries industries in July 2016. It compensates companies in the event that the company receiving the exports does not pay. This insurance has already been applied to cases of rice and fish exports.

 

Under the framework, a covered forest association can receive 95% of the expected payment in the event that the company receiving the exports goes bankrupt, for example.

 

The Ehime Forest Association currently exports Japanese cedar [Cryptomeria japonica] and Japanese cypress [Chamaecyparis obtusa] to China, South Korea, Vietnam, and Taiwan.

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