Quick Take: UK strikes a free trade deal with Japan
In the first deal post-Brexit free trade agreement, the UK has struck a deal with Japan. The deal largely mirrors that of the existing deal between the EU and Japan, however with a few minor alterations. The UK has secured tariff reductions on pork, beef and salmon. On the flip side of the coin, tariffs in stages to zero have been reduced on auto parts coming from Japan to the UK in 2026 that will boon to large Japanese firms such as Nissan that are already invested in the UK. Although this is the same in the EU-Japan agreement. Furthermore, another area in which this FTA is being touted as a success by the Department of International Trade, is that of the digital sector. Financial services are the UK’s largest export to Japan already. How much room for growth is there in agriculture exports? Financial services and automotive trade is already well established sectors of trade between the two nations. Let’s drill down into pork, beef and salmon that the UK government press release was keen to highlight.
As shown above at present the value of these exports have been rather small and perhaps an area which can see growth with this deal, however considering it closely mirrors a deal Japan previously agreed with the EU it may be a case of ‘as you were’ and something that is acknowledged by the UK who estimate this trade deal is worth £15.2 billion.