The agreement is designed for both economies and has ensured that it goes beyond existing European agreements, with great benefits for the digital industries and data, financial services, food and beverages. The agreement brings together two of the world`s most technologically advanced countries and puts the UK at the forefront of developing new global standards for digital commerce. ?? The boost for trade between the UK and Japan is estimated at more than $15 billion, with long-term economic benefits that are essential to “better dismantle” covid-19 and transform the UK economy so that it is ready for the future. At the end of the day, trade is a powerful lever for economic growth. The CBI and its members will now work with the government to take full advantage of the opportunities and ensure that the benefits are felt in all parts of the UK. “But there are differences. For example, the agreement goes beyond the EU-Japan EPA on e-commerce and financial services. On the other hand, the situation of trade in products is somewhat more mixed, as British suppliers, as it does, only benefit from lower tariffs for the export of certain products, as EU producers have not exhausted the corresponding quotas. The agreement with Japan is the UK`s first trade pact with a major economy after its exit from the European Union in January 2020, as it has not yet concluded trade negotiations with the bloc, the United States, Australia or New Zealand. The agreement with the UK is the uk`s first agreement that goes beyond the current EU agreement, with improvements in areas such as the digital and data industries, financial services, food and drink industries and creative industries.
The agreement is essentially in line with the Economic Partnership Agreement reached in February 2019 between the European Union and Japan. [11] The agreement presented last month means that almost all of its exports to Japan will be tariff-free, while UK tariffs on Japanese cars will be abolished by 2026. The UK and Japan signed a post-Brexit trade deal aimed at increasing trade between nations by $15 billion ($20 billion). Looking at the agreement, some concessions have been agreed in the United Kingdom with respect to tariffs and rules of origin to protect Japanese investment in the automotive and rail industry. This responds to the strong demands of the Japanese government. With regard to tariffs, the United Kingdom has agreed to the immediate reduction of tariffs on certain inputs in the automotive and rail industry. [16] With regard to the rules of origin, the agreement increases the accumulation of EU inputs in Japanese products and lowers the threshold for automotive components from 55% (under the EU-Japan EPA) to 50%. However, the diagonal trilateral accumulation with the EU is not resolved, as this would also require an agreement with the EU. It is highly unlikely that the EU will make such a concession that could give the UK a competitive advantage. The important point is that these rules cover only certain target areas and are far from exhaustive. Britain signs the first major post-Brexit trade agreement with Japan [11] Department of International Trade (2020).
