Britain inks post-Brexit trade deal with Japan

  • Britain inks post-Brexit trade deal with Japan

Britain inks post-Brexit trade deal with Japan

London has said the pact will boost trade with Japan by 15 billion pounds ($19.5 billion; €16.5 billion) annually and make it easier for British companies to do business in Japan.

UK-Japanese trade was worth more than 30 billion pounds previous year, according to the British government, and their agreement has a particular focus on the food and drink, finance and tech sectors.

He also said Japan welcomes Britain's interest in joining the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) free trade deal, and intends to provide necessary support. Motegi's staff even gave him some for his birthday after Truss wrangled special access for the blue variety and other British cheese - pushing the deal slightly further than what Japan had agreed in its treaty with the EU. After that, at least as now scheduled, the United Kingdom will no longer be part of the bloc's customs union and single market. Britain was also able to squeeze out improvements in e-commerce, rules of origin, and financial services during the short, three-month negotiations.

According to the Japanese Foreign Ministry, the nation already exports about 1.5 trillion yen ($14 billion) of goods to Britain, mostly automobiles, auto parts and other machinery, while importing almost one trillion yen ($9.5 billion) worth of British goods, including pharmaceuticals, medical products and cars.

Britain said the new deal meant 99% of its exports to Japan would be tariff-free.

Tariffs on Japanese cars will be removed gradually but won't be eliminated until 2026, the same as the terms of the deal Japan has with the EU.

Instead of unfettered trade among European Union member, a no-deal would leave both sides facing tariffs, custom duties and major regulatory burdens at a time when the pandemic has already created the worst economic crisis in decades.

The development comes days after Johnson threatened to walk away from the talks unless he got clarity that an agreement can be reached.

Britain formally left the European Union as a political institution on January 31, four years after a referendum that saw voters decide to withdraw from the now-27-nation bloc.

Both sides are seeking an agreement to govern their trading relationship once the UK's post-Brexit transition period ends in January 2021. "Japan has high hopes that an agreement is reached soon", he said.