The United Kingdom has signed its first trade agreement with Japan since Brexit. The British call this Friday a “historic moment”, as one of the reasons for leaving the European Union was the conclusion of our own trade agreements. Under the deal, 99 percent of UK exports will go tariff-free to Japan.
The UK writes in a press statement that agreements in the field of digital technology and data go “much further” than the European agreements with the Asian island nation. For example, British fintech companies in Japan could gain a foothold, it can be read.
On the other hand, Japanese companies that invest heavily in the UK, such as Nissan and Hitachi, are benefiting from the trade deal. The deal allows them to ship parts from Japan to the British more cheaply.
“This is a historic moment for the UK and Japan because of our first post-Brexit trade deal,” wrote British Trade Minister Liz Truss. “From our automotive industry in Wales to our shoe makers in the North of England, this deal will help us create new opportunities for people across the UK and reduce disparities in the union.”
Critics say the deal has mostly symbolic value, giving the UK economy a mere 0.07 percent push. That is only a fraction of the economic value lost by leaving the European internal market.
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