The Department for International Trade has announced that the UK and Japan have agreed in principle to a trade agreement. The deal is the UK’s first major trade agreement as an independent trading nation and 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 last week.
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 tariff free access for more UK goods, tariff reductions for UK pork and beef exports and improved market access for UK financial services.
“Safeguards on some of our iconic products through these indications recognise the quality of the food we produce in this country and we hope this will further grow the fantastic British brand in overseas markets.”
The NFU has lobbied for a UK Japan deal that does not disadvantage British farmers, providing at least the same level of market access that is afforded to EU farmers through the EU deal.
Commenting on the trade deal, international trade secretary, Liz Truss, said: “This is a historic moment for the UK and Japan as our first major post-Brexit trade deal. The agreement we have negotiated – in record time and in challenging circumstances – goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries.
“Strategically, the deal is 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.”
NFU president, Minette Batters, said: “This agreement is good news and it is an important step to ensuring some continuity in our existing trading relationships before the end of the transition period.
“We will continue to analyse this agreement to properly assess the impacts and opportunities this will bring to British farmers but there are several aspects of this agreement that seem positive for agriculture, specifically reduced tariffs on agricultural products and the increased number of geographical indications.
“Safeguards on some of our iconic products through these indications recognise the quality of the food we produce in this country and we hope this will further grow the fantastic British brand in overseas markets.”
