The UK has today published its negotiating objectives for a free trade agreement with Japan, with talks beginning shortly.
The agreement will be based on the existing EU-Japan free trade agreement and will aim to secure additional benefits for UK businesses trading with Japan.
More trade is essential in helping the UK overcome the unprecedented economic challenge posed by coronavirus.
In a statement released by the government this morning: “We’re optimistic that an agreement with Japan can give us security at home and opportunities abroad. It would help improve the resilience of our supply chains through diversity and opening new markets for business, bringing investment, better jobs, higher wages and lower prices, at a time when we need them most.”
8,000 UK small businesses already export to #Japan, and more could join them.
We want new free trade agreements to help the 5.9 million small businesses and entrepreneurs who have suffered most in this difficult period.
— Department for International Trade (@tradegovuk) May 13, 2020
Manufacturers of textiles and clothing, and professional and financial services providers are among the UK industries expected to be the biggest winners of lowering trade barriers with Japan.
A deal will aim to secure cutting edge provisions on digital trade that in turn maximise trading opportunities across all sectors of the economy, building trust and stability for UK businesses, entrepreneurs and exporters.
These additional provisions, as well as strong copyright provisions, would benefit innovative sectors such as e-commerce and the creative industries. They would also make it easier for the 8,000 small and medium sized businesses exporting goods to Japan.
Government analysis published today shows that the UK economy could benefit from a £1.5bn boost, as a UK-Japan trade deal could increase trade flows between both countries by £15.2bn.
UK exporters would benefit from zero or lower tariffs, creating potential savings worth around £33m per year, while UK workers’ wages are expected to increase by £800m in the long run as a result of the deal.
The first round of talks will start shortly using video conferencing, with negotiations continuing to take place remotely until it is safe to travel.
UK-Japan trade talks are also the first step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), helping diversify UK trade and provide opportunities in the world’s fastest-growing economies.
The government will set out its negotiating objectives for Australia and New Zealand shortly, with the aim of having 80% of total UK external trade with countries covered by free trade agreements by 2022.
International Trade Secretary, Liz Truss said: “Japan is one of our largest trading partners and a new trade deal will help to increase trade, boost investment and create more jobs following the economic challenges caused by coronavirus.
“Both sides are committed to an ambitious timeline to secure a deal that goes even further than the existing agreement especially in digital and data. Negotiations with Japan are an important step in CPTPP accession, a key UK priority, which will help us diversify our trade and grow the economy.”
Below we are publishing the UK’s negotiating objectives for a 🇬🇧🇯🇵free trade deal👇
✅ See an £15.2bn trade increase
✅ Advance cutting edge provisions on digital trade
✅ An important step in CPTPP accessionhttps://t.co/hTa2OnFBL3
— Liz Truss (@trussliz) May 13, 2020