London signs first major post-Brexit trade deal with Tokyo
British Minister for International Trade Liz Truss and Japanese Foreign Minister Toshimitsu Motegi in Tokyo on October 23, 2020. Kimimasa Mayama / Pool Photo via AP
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The British authorities hope with this agreement a rapprochement with certain countries in the Pacific while negotiations on future trade relations between the United Kingdom and the European Union are stalling.
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The trade agreement signed this Friday, October 23 in Tokyo by the Japanese and the British covers textiles, agrifood, auto parts and new technologies.
Already announced on September 11, the text broadly incorporates the existing agreement which will expire on December 31.
According to the British, this new agreement goes further, as it improves the free flow of digital exchanges.
For its part, Japan is pleased to have easier access to the British market for some of its products, and sees the United Kingdom as a gateway to continental Europe.
Increase trade with Japan
London specifies that 99% of trade between the two countries will be exempt from customs duties, and considers that this new agreement will increase their trade by 15 billion pounds sterling (16.5 billion euros), including the amount in 2019 was nearly £ 30 billion.
This is small compared to the amount of trade between the United Kingdom and the European Union, which last year amounted to 670 billion pounds.
In order to limit the impact of Brexit on its exports to the European Union, the British government is looking for new economic partners in the world.
For London, this agreement with Japan should allow it to get closer to 11 Pacific countries, within the framework of the trans-Pacific trade treaty.
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