We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
The bumper tie-up with the world’s third largest economy is the first since the UK left the European Union in January. International Trade Secretary Liz Truss will sign the agreement in Tokyo with Japan’s Foreign Minister Motegi Toshimitsu.
Other deals are being lined up with the USA, Australia, New Zealand and Canada in the coming months that will help create tens of thousands of new jobs.
Negotiations are also continuing over a post-Brexit trading relationship with the EU.
Hailing the agreement with Japan, Ms Truss said: “Today is a landmark moment for Britain.
“It shows what we can do as an independent trading nation, as we secure modern and bespoke provisions in areas like tech and services that are critical to the future of our country and the reshaping of our economy.
“Trade is a powerful way to deliver the things people really care about.
“At its heart, this deal is about creating opportunity and prosperity for all parts of our United Kingdom and driving the economic growth we need to overcome the challenges of coronavirus.”
Ms Truss also hailed the Japan agreement as an important step towards the UK joining a wider 11-nation trade deal, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Once fully operational it will account for around 13 per cent of global GDP and is worth more than £110 billion.
It shows what we can do as an independent trading nation
Under the UK-Japan deal, almost all exports will benefit from tariff-free trade, and there will be more protection for goods with geographical indications, including Yorkshire Wensleydale and Welsh lamb.
The deal will help boost car and rail manufacturing jobs at major investors in the UK like Nissan and Hitachi through reduced tariffs on parts coming from Japan.
It will also provide more liberal rules of origin and will allow producers of coats, knitwear and biscuits to source inputs from around the world for exports to Japan.
Michel Barnier’s biggest mistake exposed by Brexiteer
Peter Bone taunts Michel Barnier as he celebrates UK ‘free from EU’
‘EU nations queuing up to QUIT Brussels bloc!’ Finnish MEP’s warning
Tokyo has also guaranteed market access for UK malt exports under a more generous quota than that with the EU, as well as tariff reductions for UK pork, beef and salmon exports.
Japanese and British companies will also be able to move employees and their dependants into each country more easily under the terms of the agreement.
Dame Carolyn Fairbairn, CBI Director-General, said: “The signing of the UK’s first independent trade agreement is a milestone for our economy and will be welcomed by businesses in many sectors.
“This deal has the potential to support jobs across the country through lifting British farming exports and supporting our manufacturing and services sectors.
“Consumers will also benefit through greater choice.
“Ultimately, trade is a powerful lever of economic growth.
“The CBI and its members will now work with government to take full advantage of the opportunities and ensure the benefits are felt in all parts of the UK.”
Source: Read Full Article