METI (Small and Medium Enterprise Agency) announced September 2025 as "Price Negotiation Promotion Month" to promote price pass-through and transaction optimization throughout the supply chain. Background and Objectives To transition to a growth-oriented economy with continuous wage increases, securing resources for such increases is essential, making further price pass-through and transaction optimization crucial. This initiative establishes September and March annually as "Price Negotiation Promotion Months" to facilitate appropriate price pass-through by SMEs amid rising energy, raw material, and labor costs. System Mechanism and Implementation Since September 2021, the following initiatives are implemented biannually:
- Publicity and awareness campaigns: Message videos from Vice Minister Muto, request letters to industry associations
- Workshops and seminars: Disseminating price negotiation and pass-through methods
- Requests through industry associations: Soliciting cooperation from ordering companies for price pass-through Enhanced Follow-up Surveys After each campaign period, comprehensive follow-up surveys verify effectiveness:
- Questionnaire surveys: Quantitative assessment of price negotiation and pass-through status from numerous SMEs
- Subcontractor G-men interviews: Detailed field-level investigations
- Anonymity assurance: Ensuring responses remain confidential from ordering companies
- Industry-specific analysis: Results and rankings by sector for price pass-through rates Strengthened Guidance and Advice Based on the SME Management Enhancement Act, measures are implemented for ordering companies with poor performance:
- Guidance from responsible ministers: Direct improvement requests to problematic ordering companies
- Engagement with management: Promoting awareness reform at corporate leadership level
- Instructions to procurement departments: Ensuring specific improvement actions at operational level Policy Significance and Future Development This system aims not merely to accept price increases but to promote appropriate value-based pricing through:
- Improving SME profitability and securing wage increase resources
- Enhancing supply chain sustainability
- Structural transformation and competitiveness strengthening of the Japanese economy The initiative continues supply chain-wide transaction optimization efforts despite uncertainties from US tariff measures, with government agencies and local authorities encouraged to lead by example.