The United Kingdom and Japan signed a free trade agreement in Tokyo on Friday, October 23, marking the UK’s first major trade agreement after Brexit. The deal was initially agreed in principle on September 11. The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) will push trade with Japan as much as £15.2 billion over the next 15 years, and increasing GDP by around 0.07%, claims the UK government. The agreement will mean 99% of UK export to Japan will be tariff-free, and in return, the UK will get access to marked down high-quality Japanese goods.
Liz Truss, British International Trade Secretary, said in a statement that this marked Britain's landmark moment as the nation shows what it can do as an independent trading nation. As the country ensuring modern and implying provisions in sectors like services and tech, areas that critical to the country’s future and the reshaping of the UK’s economy. Truss said that trade is a powerful way to deliver things cared by people, creating prosperity and opportunity for all parts of the UK and propelling the needed economic growth to overcome the pandemic challenges. Much broader strategic significance also gained with the agreement, as it opens a passage to Comprehensive Trans-Pacific Partnership membership, the pathway to boost economic security and much more opportunities for British business. The pact is also a way to deepen the relationships with other like-minded democracy, Britain’s primary investor and key ally, Truss added.
Director-general of the Confederation of British Industry (CBI), Dame Carolyn Fairbairn expressed that the signing is a milestone for the UK economy and will be appreciated by businesses in many sectors. Moreover, the agreement has the capability to strengthen the foundation of the jobs across the country through increasing exports in British farming productions and supporting services and manufacturing sectors, as well as providing a more excellent choice for customers. Fairbairn added that trade is a powerful booster for economic growth, and CBI, its members and the UK government will work together to grasp the maximum advantage of the opportunities and its benefits received nationwide.
UK-EU post-Brexit trade talks are also scheduled to be continued this week.
