Eu Japan Free Trade Agreement Brexit

For Tokyo, the agreement only guarantees continuity with the country`s 15th largest trading partner – a negligible achievement. Japanese companies would still be in an unpredictable situation without a trade agreement between the EU and the UK. Just over a year ago, then-Foreign Secretary Kono Taro expressed concern that more than 1,000 Japanese companies based in the UK could move to the EU if Brexit goes ahead without a deal. The European market is of particular importance to Japanese car manufacturers and they can no longer take risks if they stay in the UK. In fact, Honda could only be the first in a series to leave the UK to carry out its European operations. A change in the size of Japan`s foreign direct investment (FDI) in the UK is also expected to occur in the event of a hard Brexit. The UK Department for International Trade (UK) said the UK had a free trade agreement with Japan; This is the UK`s first major trade agreement as an independent trading nation after the UK`s withdrawal from the European Union (EU). The agreement is expected to increase the UK`s trade with Japan by about $15.2 billion. „The agreement is likely to provide a launching pad for further development of the UK`s relations with Japan, including in the areas of defence and security. The fact that the Pacific region is expected to stimulate global economic growth in the coming years is also relevant,“ he said. „The UK`s more active engagement in one of the world`s most economically dynamic regions will help improve the UK`s ability to influence developments in the region, including opening up broader services trade, developing more robust regulation in areas such as data protection, and introducing stronger bonds for fair competition as a cornerstone of multilateral trade.“ It is excellent to see that this agreement between the United Kingdom and Japan has a full chapter for SMEs. The FSB has long been committed to integrating these chapters into trade agreements to provide uk small businesses with the support and tools they need to reach new markets.

Britain officially left the EU as a political institution on 31 January, four years after a referendum in which voters decided to withdraw from the 27-nation bloc.