Britain after the separation .. the first major trade agreement with Japan, what are the expected gains?

On Friday, Britain and Japan officially signed a trade agreement, which is the first major agreement for the United Kingdom after leaving the European Union, at a time when it continues to face difficulties to conclude an agreement with its closest trading partners in the European Union.

"How appropriate it is to be in the Land of the Rising Sun to welcome the dawn of a new era of free trade. This is the first new free trade agreement to be concluded since the United Kingdom became an independent trading nation again," British Trade Secretary Lise Truss told reporters after the signing ceremony in Tokyo.

The signing comes after Truss and Japanese Foreign Minister Toshimitsu Motegi reached a general agreement last September.

Mutiji said the signing came only 4.5 months after the start of negotiations. "This is evidence of Japan and the UK's determination to continue to vigorously promote free trade," Mutegi said.

Britain said the deal means that 99% of its exports to Japan will be duty-free, and that it could increase trade by 15.2 billion pounds ($ 19.9 billion) in the long term, compared to 2018.

Welcome and cautioned

The agreement will eliminate British duties on Japanese cars in stages, reaching "zero" in 2026, which is similar to the trade agreement between Japan and the European Union.

Mutegi said after the signing that he had agreed with Truss to work together until the agreement enters into force on January 1, 2021.

The pact has yet to be vetted by the parliament in both countries.

The new agreement is largely in line with the existing free trade agreement between Japan and the European Union.

Britain and the European Union on Thursday resumed difficult negotiations to agree on their next trade relations, after a week-long paralysis.

The two sides want to avoid economic chaos at the end of the year as the points of contention persist.

Britain remains part of the single market and the EU customs union throughout the Brexit transition.

The value of trade exchange between Japan and Britain exceeded 30 billion pounds last year, according to the British government.

Japanese companies have welcomed the agreement between London and Tokyo, but they are concerned about whether Britain will be able to reach an agreement with the European Union on future trade relations between itself and the bloc before the end of the transition period.