Uk Trade Agreement Japan
The deal could boost trade between the UK and Japan by more than $15 billion and, in the long run, boost economic growth, benefiting all parts of the country, including Scotland, London and the East Midlands. The signing of this free trade agreement and its subsequent ratification will not only strengthen the British economy, but also help us to build better from Covid-19. “But there are differences. For example, the agreement goes beyond the EU-Japan EPA on e-commerce and financial services. On the other hand, the situation of trade in products is somewhat more mixed, as British suppliers, as it does, only benefit from lower tariffs for the export of certain products, as EU producers have not exhausted the corresponding quotas. UK Trade Minister Liz Truss said the UK expects “an additional 15 billion pounds of trade” with Japan to be secured. Cheese was often the wheel on which these trade negotiations seemed to turn. Improved market access would have already widened a gap between the two parties in August. Truss marked last week`s official signing ceremony by handing a glass of stilts to Japanese Foreign Minister Motegi Toshimitsu. But if cheese producers had high hopes of a strong export surge in the agreement, they might be somewhat disappointed.
Tokyo has rejected attempts by the UK to buy additional quotas for agricultural exports. Instead, the UK can now use all the remaining EU quotas for 10 out of 25 products that currently have reduced tariffs under the EU-Japan agreement, including cheese, tea blends and wheat products. For example, if the EU uses 20,000 tonnes of its 21,000-tonne quota to export cheap cheeses, the UK can use the remaining 1,000 tonnes. Other products, including butter, whey and sugar, have lost access to lower tariffs. Japan also signed the massive Regional Comprehensive Economic Partnership (RECP) trade agreement with China and the 10 ASEAN members on 15 November, covering nearly a third of the world economy and concluding eight years of bitter negotiations. “It ensures continuity, so that after the end of the year, if the UK is no longer treated as an EU member for international free trade agreements, trade with Japan can continue under the same conditions,” he said. At the end of the day, trade is a powerful lever for economic growth. The CBI and its members will now work with the government to take full advantage of the opportunities and ensure that the benefits are felt in all parts of the UK.
With regard to agricultural imports into Japan, the new agreement will not introduce new quotas with lower tariffs, although London wanted to increase Stilton`s blue cheese exports. Britain and Japan have officially signed a trade deal that marks the UK`s first major deal after Brexit. After the signing, the final text of the treaty will be submitted to Parliament for 21 days of session for consideration under the Constitutional Reform and Governance Act (CRaG).