The UK has agreed it’s first post-Brexit Free Trade Agreement today. The FTA made with JAPAN is the first major trade deal made by the UK as an independent trading nation.
The trade deal that has been secured by the UK with Japan is set to increase trade with Japan by an estimated £15.2 billion.
The UK-Japan Comprehensive Partnership Agreement was agreed in principle by video call this morning between the UK’s International Trade Secretary, Liz Truss and Japan’s Foreign Minister, Motegi Toshimitsu.
In a boost to Brexit supporters and contrary to claims made by remain supports, that the UK would not be able to make trade deals outside of the EU with terms as favourable as those enjoyed as a member of the block, the new Japan deal is reported to be tailored to the UK economy specifically and secures additional benefits over and above the EU-Japan trade deal.
As a result, UK businesses exporting to Japan will gain competitive advantages in numerous areas which will drive economic growth throughout the UK and create additional jobs in the process.
In addition to the already mentioned benefits, the agreement will also help to facilitate the UK joining of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which will help to increase the diversity and resilience of the UK supply chain and open up a gateway for UK businesses to the Asia-Pacific region.
The deal ensures that businesses in the UK will benefit from 99% tarrif free exports to Japan and according to Government analysis, will give the UK ecconemy a £1.5 billion boost while increasing workers’ wages by £800 million in the long run.
The UK-Japan deal is set to benefit manufacturers, food and drink producers and the tech sector in the UK and incude:
- Cutting-edge digital & data provisions that go far beyond the EU-Japan deal.
- Improved market access for UK financial services.
- Tariff free access for more UK goods.
- New protection for more iconic UK goods.
- New protections for UK creative industries.
- Improved mobility for business people.
- Supporting UK car and rail manufacturing.
- More generous market access for malt producers.
- Strong tariff reductions for UK pork and beef exports.
The UK International Trade Secretary, Liz Truss said of the deal:
“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.
“From our automotive workers in Wales to our shoemakers in the North of England, this deal will help build back better as we create new opportunities for people throughout the whole of the UK and help level up our country.
“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.”
The director-general of the CBI business group, Carolyn Fairbairn hailed the signing of the deal as a “breakthrough moment” and added that, “Business will help support the government in its efforts to secure more trade deals around the world and promote their benefits to communities,” she said. “The Japan deal can be the first of many.”
For more on this “historic” trade deal visit the the UK Government website.