After years of negotiations, Japan and the United Kingdom (UK) have finally reached a historic trade agreement. This deal marks the first major post-Brexit trade agreement for the UK, as it seeks to maintain strong economic ties with countries outside of the European Union.
The trade agreement, which was signed on October 23, 2020, is set to go into effect on January 1, 2021. It covers a wide range of industries, including agriculture, automobiles, and digital services. Let’s take a closer look at what this trade deal means for both countries.
For Japan, this deal provides increased access to the UK market for its automobile and agricultural exports. Japan is the UK’s third-largest non-European Union trading partner, with exports to the UK worth around £30 billion ($38.8 billion) in 2019. Under the new agreement, tariffs on Japanese automobiles will be gradually phased out over the next decade, while tariffs on Japanese electronics and train parts will be eliminated immediately.
Additionally, Japanese farmers will have greater access to the UK market for products such as bluefin tuna and Kobe beef. The UK has agreed to eliminate tariffs on Japanese agricultural products over the coming years, providing Japanese farmers with a new market for their goods.
For the UK, this trade agreement is a significant step towards securing its economic future outside of the EU. The UK is the first major economy to agree to a post-Brexit trade deal with Japan and hopes to use this agreement as a template for future deals with other countries.
The trade deal will benefit numerous UK industries, including financial services and digital products. The agreement includes measures to protect intellectual property rights and facilitate the flow of digital services between the two countries. This is particularly important for the UK, which is home to one of the largest financial services industries in the world.
Overall, the Japan-UK trade agreement is a major win for both countries. It provides increased access to new markets and strengthens economic ties between two important global players. As the UK continues to navigate its post-Brexit future, it will be crucial to secure similar agreements with other countries to ensure continued economic growth and stability.