The UK and Japan have secured a major free trade agreement together, which is the UK’s first major trade deal as an independent trading nation.
The UK has secured a free trade agreement with Japan, which will increase trade with Japan by an estimated £15.2 billion.
The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu on a video call onFriday 11 September.
Welcoming the FTA, James Wild MP said -
"This deal is the UK’s first major trade deal as an independent trading nation and heralds all the possibilities of the UK's global trading future.
This is also an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of modern free trade agreements with like-minded friends and allies."
The FTA is tailored to the UK economy and secures additional benefits beyond the EU-Japan trade deal, giving UK companies exporting to Japan a competitive advantage in a number of areas. It will help to create jobs and drive economic growth throughout the whole of the UK.
The deal is also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This will give UK businesses a gateway to the Asia-Pacific region and help to increase the resilience and diversity of our supply chains.
UK businesses will benefit from tariff-free trade on 99% of exports to Japan. Government analysis shows that a deal with Japan will deliver a £1.5 billion boost to the UK economy and increase UK workers’ wages by £800 million in the long run.
UK manufacturers, food and drink producers and the tech sector are all set to benefit from the measures in the UK-Japan deal, which include:
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Cutting-edge digital & data provisions that go far beyond the EU-Japan deal, enabling the free flow of data whilst maintaining high standards of protection for personal data.
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Improved market access for UK financial services – including greater transparency and streamlined application processes for UK firms seeking licences to operate in Japan.
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Tariff free access for more UK goods – new and more liberal Rules of Origin will allow producers of coats, knitwear and biscuits to source inputs from around the world for their exports to Japan – making it easier and cheaper for them to sell to the Japanese market.
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New protection for more iconic UK goods – increasing geographical indications (GIs) from just seven under the terms of the EU-Japan deal to potentially over 70 under our new agreement, covering goods including English sparkling wine, Yorkshire Wensleydale and Welsh lamb. This would lead to improved recognition of key UK brands in the Japanese market.
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New protections for UK creative industries – British businesses can now be confident that their brands and innovations will be protected from the online infringement of IP rights, such as film and music piracy.
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Improved mobility for business people – securing more flexibility for Japanese and British companies to move talent into each country, covering a range of UK skilled workers to enter Japan, from computer services to construction.
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Supporting UK car and rail manufacturing – supporting major investors in the UK like Nissan and Hitachi through reduced tariffs on parts coming from Japan, streamlined regulatory procedures and greater legal certainty for their operations.
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More generous market access for malt producers – Japan has guaranteed market access for UK malt exports under an existing quota which is more generous and easier to access than the EU quota.
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Strong tariff reductions for UK pork and beef exports – lower tariffs on pork, beef, salmon and a range of other agricultural exports.
The UK and Japan have a long-shared history as free trading nations and this deal marks an historic moment that will deepen the partnership between two democratic island nations.
