UK says Japan trade deal means 99% of exports will be tariff-free

Britain said its newly secured trade deal with Japan means that 99% of the country's exports to Japan would be tariff-free. The agreement between the two countries was agreed in principle on Sep 11. The deal is the first major post-Brexit trade pact for Britain and would increase trade with Japan by nearly $20 billion a year. It's also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).



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[shanjanusman]

This is a good deal with the third biggest economy in the world

[ラビットパンチ-js]

At least, Japan don't force UK to accept imigrants and bother UK's businesses in Asia.
If UK try to business in Asia, Tokyo can be based.

Of cource, as a Japanese, we can get benefits in terms of ecnomic, finance, and national security.

I think we can built mutually benefit relationship.

[albertmcmullen]

Britain needs to hold its nerve, the country is almost there.

[johncapo]

wait till the EU puts the squeeze on Japan
then what, will they cancel the new deal with the uk

[vincentmurphy]

Fairly misleading analysis of the situation in my opinion. Mistrust between the eu and uk? Ypur reporter failed to point out that the government admits it plans to break international law. It's not a question of each mistrusting the other. The uk may mistrust the eu but the eu knows for sure that thr uk government isn't acting on good faith.

[anth]

The BBC failed to report this highly significant trade deal. I wander why?

[marcuswalmsley]

A beautiful high tech UK based on the best of Asia I am down for

[brianhough]

That’s one thing the UK will have plenty of fish to sell to Japan (The Japanese love fish). 🇬🇧🇬🇧🇬🇧🇬🇧🇬🇧👍

[ZaydDepaor]

So can we get cheap Japanese electronic goods now in UK?

[DaysLikeThese]

his "big" UK-Japan deal is 99% identical to the existing EU (includes UK) - Japan trade deal - but with some minor digital additions. Before you can celebrate this amazing deal (In 2019, UK-EU trade £614Bn (48%), UK-Japan trade £27bn (2%)) read what Japans Foreign Minister, Toshimitsu Motegi said today "a deal between the UK and the EU is still crucial for Japanese businesses such as Toyota and Nissan". Still want no-deal??

[djames]

The only thing where losing from the EU are the chains around are feet.

[alvanrigby]

What the UK is leaving behind with the European Union is one of the world's biggest trade deficits.

[mrmorgan]

I love Japan and I regularly buy imported goods from there at over-inflated prices. This should mean cheap imports from one of the coolest countries on the planet. Yay!

[yoyo]

Boris legend! Global Britain 🇬🇧 on the March! 👍🇬🇧🇬🇧

[detlefliche]

Well, this was a relatively easy deal to strike, and I am sure it will work out more to the benefit of Japanese businesses then it will work out for British companies.
This become very apparent if you look at the UK’s exports to Japan which are currently about $ 8.2 Billion, while Japan’s exports to the UK is about $ 13.9, to bring that into proportion UK exports to the EU are about £300 billion.
Furthermore, there are about 140, 000 people employed in the UK by a Japanese owned company, and many work for Japanese manufacturers which use Japanese semi-finished products in their assembly.
There is absolutely no reason to celebrate an agreement with Japan at this moment in time. There is no guarantee that it will work out, that takes much more than a piece of paper. However, I am sure that unlike the UK, Japan will benefit from this agreement, even more, as they already do.
Japan did not sign the agreement because it wants to reduce its positive trade balance with the UK.
As a member of the EU, Britain had all the best opportunities to Export its products, not only into the Single Market but also to the about 50 or so countries the EU has free trade agreements with. Apart the UK was always free to export to other countries under WTO terms.
Unfortunately, British Businesses did not make good use of all these great opportunities, and why should things suddenly change?
Trade Agreements can certainly help to improve export, but they are often not worth the paper they are written on. Even if the government should agree a few more deals, it will most likely not make a big difference.
Trade agreement could actually work against the interest of one or the other side, if just one makes good use of it, but the other not.
It is a delusion to believe that Free Trade Agreements mean free unrestricted trade.
Countries which negotiate this agreements do so only because they want to improve the opportunities for their businesses and people, in the hope that this deal generates more prosperity, jobs, tax revenue and investment for their own country, and they do not care about how well or bad such an agreement works out for the other side.
Negotiations need to take hundreds of issues into account and that will determine what goes into the agreement.
For example, the compliance with domestic legislation and standards of each side, and there is an inherit problem in that, it still generated red tape and the technical adaption of products, and both are costly.
Each side has normally other trade agreements with third countries, and they need to be compatible, since potentially one agreement could easily undermine the other, as one country could be abused as a gateway, and then the rules of origination and other similar issues have to be considered.
As much as countries are looking for new opportunities, they will first of all try to protect their own interests, businesses, jobs and ….
Consequently, most Trade Agreements apply only to rather specific industries, while others are excluded, and frequently they also include quotas on how much a country can export of one or the other good.
The term free trade agreement is misleading.
The accusation by British Politicians that the EU was hindering the UK to trade successfully was a ludicrous barefaced lie, this was all about scapegoating the EU for all the failings by various Tory governments, like the failing or non-existing regional and industrial policies, underinvestment in infrastructure and skills, and, and, and…, all a result of the Tories fatalistic believe in a free-market economy in which market forces will regulate everything.
To sell products and services in a very rivalling world successfully Britain needs to become incredibly competitive.
That Britain’s failed was its inability to compete successfully, has nothing to do with EU. Though these crooks, Johnson, Farage, Gove and all the others managed to convince too many people with their lies.
More important than any trade agreement, is that the product offered has the right mix of desirability, durability, availability, features, functionality, design, quality, price, service and so on, and very evidently that is where British products failed, the markets made that decision.
Beside the wrong mix of product-attributes and price, British short-termism, underinvestment, insufficient skills, low productivity and so on are not the EU’s fault.
That the EU’s Single Market and the EU’s trade agreement work becomes very apparent and evident, if you compare the UK with Germany, both have worked so far under the same EU framework.
That for example, Germany is by about 20% more productive than the UK, highlight one of issues why Britain less competitive.
Germany exports about three times as much as the UK and has a Trade Surplus of $ 249 Billion, while the UK has a Trade Deficit of $ 6.46 Billion, now that speaks for itself.
The Business cultures are different, German business are often medium seized family owned business, which have a long-term approach and with it comes far greater commitment and willingness to invest, without expecting an immediate return.
There is also a much better relationship between employer employee and both work towards the same end and they take pride in what they produce.
In Britain most companies are owned by shareholders. The owners are emotionally disconnected from the companies they have shares in, they want short-term gains. Speculating with shares, share value, the resale-ability of the same and dividends in a year matter considerably more to them than how a company is doing in five- or ten-years’ time.
Worse, many of these shares are owned by Hedge Funds, Equity Firms, Venture and Disaster Capitalists.
They are not only extremely opportunistic speculators, they recklessly and irresponsibly exploit companies, people, markets, and economies.
Assets are stripped wherever possible, people made redundant, they avoid to pay their taxes, and if they invest they only do it to stabilize share value or push up it up, before they sale them on. Their assets are often owned by their offshore holding companies, they keep taking much of their capital out of the county where they make their profits and they have absolute no ethics or loyalties.
That make you wonder why this group contributed more than 80% of the money to the New Tory-, Brexit- and UKIP party as es Leave or other campaigns.
Anyway, if the UK wants to export more successfully the country manufacturers need to make their products more saleable.
To achieve that, the government needs to make sure that there is a good infrastructure, a qualified workforce, and ….
Companies need to increase productivity and quality and that requires serious investments in machinery, facilities, workforce, and ….
This also requires serious investments into R&D, Services, Marketing and so on.
We live in a technology driven, progressive and fast changing world and companies need consistently adapt to that changes as much as trying to drive them. Shareholders which are disconnected and expect quick return cannot keep up.
If so, many companies failed to export successfully, why should that suddenly change after Brexit?
The clueless unicorn hunting Brexiteers in the government are certainly the wrong people to navigate this country though its most difficult time.
True, the EU has a trade surplus, but their believe in that fatal fallacies, that the EU is more dependent on trade with the UK is horrifying.
The reality looks quite different, because seize matters, and maybe a few Brexiteers can work out whose economy is more vulnerable.
Britain’s GDP is about £ 2 Trillion
The UK Export to the EU is around £300 billion
The UK Export to the EU makes up 15% of its GDP
The EU’s 27 GDP is about £ 13, 6 trillion
The EU’s Export to the UK is roughly £372 billion
The EU’s Export to the UK makes up 2.7 % of its GDP

[nicoledean]

How does Japan think it's ok to have a trade deal with a country that's breaking international law?

[jamiestewart]

Exporting cheese to a 70% lactose intolerant country. Back of the net!

[Nizzle]

As an American. I hope we can have a 100% free trade deal so we both can gain from each others markets and boast businesses.

[kaygreen]

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[tommab]

Good luck with the Commonwealth.
UK and Japan. We have nothing in common.
Except, Right side traffic and
lost a war with the USA once.