UK Strikes First Major Post-Brexit Free Trade Deal With Japan
The UK has struck a historic deal with Japan and came to terms for a free trade agreement (FTA), marking the first ever deal of its kind. The deal was arranged to be the first big thing post-Brexit trade deal, expected to increase the trade by £15bn a year.
UK’s International Trade Secretary Liz Truss exclaimed her excitement over the deal and also called it a "historic moment". Moreover, she also seemed confident about bringing "new wins" for the British businesses in the field of manufacturing, food and drink, and tech industries. The critics also call the deal to be of symbolic importance which is expected to boost the UK’s GDP by 0.07%, adding to a fraction of the trade that could be lost with the EU.
Talking further about the deal, Ms. Truzz added, “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.” Considering the fact that TPP is a sprawling multinational trade pact.
Effective from the start of 2021, this deal is expected to eliminate all the tariffs laid on over 99% goods that are traded between Japan and the UK. Besides working on the reduction in tariffs, this FTA deal will also be reducing trade barriers in services exports.
Talking about the goods trade section, UK’s department for international trade (DIT) says, adding that “new and more liberal” rules to the total trade that takes place across these nations will allow the British producers to source their inputs from around the globe. Interestingly, their exports to Japan are said to be, “making it easier and cheaper for them to sell to the Japanese market”.
Another major focus that was emphasized while the deal was amended was towards agriculture. Being a major area of discussion while the deal was being done, analysts predict Japan might also offer the UK similar levels of access to its agriculture market as it did the EU.
Adding to the news on the Japanese side, their officials also highlighted the significance of their deal. The deal with the UK in joining the TPP also includes Australia, Japan, Malaysia, Vietnam, Peru, New Zealand, Canada, Mexico, Chile, Singapore, and Brunei. The deal is a replica of the existing agreement between Japan and the EU. However, it adds a new digital provision that allows a ban on data localization, allowing the British financial services companies and Japanese game makers to operate from offshore servers.
SEO Meta: The UK has struck a historic deal with Japan and came to terms for a free trade agreement (FTA), marking the first-ever deal of its kind.