The new UK-Japan free trade agreement will allow the pharma industry to continue trading “largely as they do now”, the Association of the British Pharmaceutical Industry (ABPI) has said.
The deal, announced last month, comes ahead of the end of the Brexit transition period, after which the UK will be free to strike import and export deals with the rest of the world.
According to the Government, the agreement could boost trade with Japan by an estimated £15.2 billion and is an “important step towards” joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Membership of the partnership will give UK businesses a “gateway” to the Asia-Pacific region and open new avenues to commercial opportunities.
Welcoming the agreement, the ABPI said the terms will also enable UK and Japan to “incorporate the functions of the existing EU/Japan Mutual Recognition Agreement (MRA) for medicines”, which means both countries will “continue to accept each other’s drug safety testing and inspections before export”.
Significantly, this will remove “unnecessary duplication, disruption to supply chains or delays to patient access to medicine”, said the trade body.
“The UK-Japan agreement provides much-needed continuity to businesses in our sector as they focus on preparations for the end of the transition period,” said Claire Machin, Head of International Policy at the ABPI.
“These early deals are an opportunity for the Government to set out a future trade agenda which supports innovative British industries, encourages R&D investment and strengthens the UK’s role as a leader in life sciences. We look forward to working with them to achieve that in future agreements.”
According to the latest statistics, the UK exported approximately £23.3 billion worth of pharmaceutical goods in 2019. Around 3.3 per cent, or £0.76 billion, of this, was to Japan.
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