The UK has struck its first post-Brexit trade deal with Japan, hailing the agreement as a “landmark moment” just as it is struggling to clinch a deal with its closest trading partners in the European Union.
The UK said the deal, which had been agreed in principle, meant the 99 percent of its exports to Japan would be tariff-free.
The digital and data provisions in the deal went “far beyond” those in the EU’s trade deal with Japan, and helped British fintech companies operating in the Asian country, he said.
Financial services companies, food producers, coat makers and biscuit bakers, as well as cheese producers, would benefit from the agreement, which represents a "Important step" for the UK to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the Asia-Pacific region.
Major Japanese investors in the UK, such as Nissan and Hitachi, would benefit from the reduction of tariffs on the pieces from Japan and the simplified regulatory procedures, according to him release from the British Department of Trade.
British Prime Minister Boris Johnson has said Brexit gives the UK the freedom to sign trade deals with other countries around the world.
Listing
Critics say such deals are unlikely to replace lost exports to the EU if a deal cannot be reached with Brussels.
Narrow window
The EU has ordered Britain to scrap a plan to break its divorce treaty but Johnson's government has refused, potentially scuttling four years of Brexit talks.
Japan wanted to reach a broad consensus with the UK on trade this week before a change of government in Tokyo which could have caused negotiations to go off track.
The ruling party of Japan to elect new leader on Monday to succeed Prime Minister Shinzo Abe, who is stepping down for health reasons. His successor will become the next prime minister and form a new cabinet.
The political changes could include replacing Japanese Foreign Minister Toshimitsu Motegi, who is leading the trade negotiations. Motegi said on Friday the aim was for the trade deal with Britain to take effect in January.
Japan will submit the agreement to its parliament, which is expected to convene later this year.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
