A big day for the Department for International Trade today as Liz Truss signs the UK’s first trade deal as an independent country for decades. The Japan deal was agreed in principle over a month ago, however it was formally signed this morning at a ceremony in Tokyo. Next stop: TPP membership, boosted by our new best friend Japan’s 2021 chairmanship…
The Government is hoping this morning’s shock news of the UK’s new trade deal signing with Japan will calm supporters’ nerves and get Brexit back on track after the last week’s news and rows over the Internal Market Bill, Guido hears. The deal, which represents a boost to trade of £15.2 billion over the next 15 years was agreed this morning via video call between Liz Truss and Japan’s Foreign Minister Motegi. The news came as a big surprise – most were expecting the talks to wrap up by the end of the month…
The DfIT had been deliberately keeping the true progress of the talks close to their chest in efforts not to trip up the deal, and are delighted they managed to pull the trade coup off before the end of the week. While news about sparling wine and Wensleydale cheese hits headlines, the biggest victory is on digital and data provisions which go “far beyond” the EU-Japan deal, enabling the “free flow of data”.
The deal is the first ‘new’ one struck by Brexit Britain so far, however Ministers have been diligently working on multiple rollover deals in the background, with Guido hearing rollover agreements for 70% of global trade by volume have now been reached (prior to ratification in respective countries parliaments). Guido understands the next targets for the rest of 2020 are Australia, then Turkey and the EEA following a deal with the EU in October…
Japanese Minister Toshimitsu Motegi will meet with Trade Secretary Liz Truss in London today to hammer out the final details of an imminent UK-Japan trade deal, expected – among other victories – to wipe out tariffs on British luxury leather goods, down from 30% today. The first post-Brexit trade deal is set to be a stonker…
Carmakers and consumers are also set to benefit, with cheaper costs when buying parts; UK consumers will experience cheaper electronic goods too. The most eye-catching of all is the UK leaving the EU in the dust when it comes to exporting pork. Japan’s protective pork industry agreed to reduce tariffs with the EU within 12 years; the UK agreement will speed this process up. Five years on from her infamous ‘pork markets’ party conference speech, Liz is finally bringing home the bacon. Cheese imports remain unchanged…
The Japanese Government have been doing their best to stoke fears over No Deal, the foreign minister threatened both Hunt and Boris over it last week. Meanwhile Japanese businesses are just getting on with investing in the UK. Japanese telecoms giant NTT Corporation has announced that they’re opening a new global HQ for their international subsidiary in London. NTT Corp has an annual revenue of over $100 billion a year and currently employs 40,000 people. The new London-based subsidiary merges three companies into an $11 billion business. Hardly running scared of a No Deal Brexit…
NTT Corp President and CEO Jun Sawada said their commitment to the UK remains “extremely strong” and that they made a “deliberate decision” to choose London after considering several locations:
“It has many benefits, including a stable economy, wealth of skills and talent, diversity in population and thinking, strong infrastructure, schools and housing for global talent moving to the city. In short, it’s a great city to live and work in, and we’re excited that we are making it the home for our new business”.
None of which is going to change after the UK says sayonara to the EU…
Good news yesterday that the EU and Japan signed a huge free trade deal on Tuesday that cuts or eliminates tariffs on nearly all goods. A major boost for the global trading system that is under increasing threat from Trumpian protectionism. Trade between the EU and Japan currently stands at €86 billion…
The deal does allow for some regulatory alignment in so much that, for example, car safety and environmental standards will be aligned, Japan will also adopt international labelling standards for textiles and medical products. Something rational brexiteers can live with so long as the regulatory alignment is not restrictive of non-export goods. What the agreement does not require is for Japan to join the customs union or the single market. It does not require the ECJ’s ultimate jurisdiction, instead a mediation panel and the Dispute Settlement Body of the WTO will be the arbitration method. This is normal for free trade agreements.
Remainers can’t explain why the UK can’t have a similar deal with the EU. Anyone might think that the EU is just trying to frustrate Brexit…
