The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) will create opportunities for businesses in digital and data, financial services, food and drink, and the creative industries, it has been revealed.
The “historic free trade agreement” – which was signed by both Governments in Tokyo on Friday 23 October – could reportedly boost trade between the two regions by “over £15 billion”.
The new deal comes less than 100 days ahead of the end of the Brexit transitional period, after which the Government will be free to strike its own import and export deals with the rest of the world.
According to the UK Government, the UK-Japan CEPA will bring together “two of the world’s most technologically advanced nations” and provide wide-ranging benefits for UK businesses, including:
- Digital and data provisions that go “far beyond the EU-Japan deal”, enabling the “free flow of data”, “a commitment to uphold the principles of net neutrality” and “a ban on unjustified data localisation that will prevent British businesses from having the extra cost of setting up servers in Japan”
- Supporting UK car and rail manufacturing jobs at major investors in the UK like Nissan and Hitachi through “reduced tariffs on parts coming from Japan, streamlined regulatory procedures and greater legal certainty for their operations”
- Strong tariff reductions on key agricultural products like pork, beef and salmon that will benefit farmers and food exporters
- A boost for UK brands with protections for more iconic UK agricultural products, from just seven under the terms of the EU-Japan deal to potentially over 70, including English sparkling wine, Scotch beef and Welsh lamb, and
It has also been reported that the new UK-Japan free trade agreement will allow the British pharma industry to continue trading “largely as they do now” with Japanese partners.
Welcoming the agreement, National Chair of the Federation of Small Businesses, Mike Cherry said: “It’s excellent to see that this UK-Japan agreement contains a comprehensive chapter for SMEs.
“With over 8,000 small businesses already exporting to Japan, the market is already a lucrative and successful route to trading, and this should provide small businesses looking to grow, maintain or start exporting to Japan with the certainty they need for the future.”
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