Cheese, Car Parts And Kobe Beef: Britain's Trade Deal With Japan
Faizan Hashmi Published October 23, 2020 | 01:06 PM
Britain says the post-Brexit trade deal signed with Japan on Friday "secures major wins that would be impossible as part of the EU", though its substance is largely similar to the current EU-Japan accord
Tokyo, (UrduPoint / Pakistan Point News - 23rd Oct, 2020 ) :Britain says the post-Brexit trade deal signed with Japan on Friday "secures major wins that would be impossible as part of the EU", though its substance is largely similar to the current EU-Japan accord.
Britain hopes the agreement will boost trade with Japan by around $20 billion when it comes into force in January after being ratified by lawmakers in both countries.
Here are four things to know about the bilateral deal: - Low or no tariffs - When the deal was announced last month, Britain said it meant around 99 percent of its exports to Japan would be tariff-free.
Under the current EU-Japan trade agreement, in place since February 2019, the vast majority of custom duties are also absent.
The European Union says that under its deal, the bloc's meat exports to Japan increased by 12 percent, while electrical machinery exports were boosted by 16.4 percent.
"In terms of market access, we have maintained Japan's high level access to the UK market as under the Japan-EU deal," Japan's Foreign Minister Toshimitsu Motegi said on Friday.
"And for some products such as train cars and autoparts, we have improved access." - Wensleydale - The Japan-UK deal has a particular focus on exports in the food and drink, finance and tech sectors, and aims to reduce red tape for British pork, beef and salmon farmers.
It also includes brand protection for British goods, including English sparkling wine, Yorkshire Wensleydale cheese and Welsh lamb.
In return, the UK government says consumers will be able to buy "cheaper, high-quality Japanese goods -- from udon noodles to Bluefin tuna and Kobe beef".
There are currently 241 British businesses in the agriculture and food sector who import from Japan, and 693 who export goods to Japan, the UK government says.
But unlike the Japan-EU deal, this agreement lacks quotas for agricultural exports like cheese, according to the Financial Times, and instead allows Britain to use any such quotas left over by the EU.
- More services - The deal includes new provisions on digital trade that aim to ease the flow of data, among other changes.
"This deal doesn't just preserve existing benefits, but it strikes out in services like digital and data, where the UK and Japan both have strengths, and hope to collaborate in future," said Britain's International Trade Secretary Liz Truss.
The UK hopes the deal will help its companies that supply services -- from financial to telecoms and transport -- gain access to the Japanese market.
While some analysts have cast doubt on how much difference the new digital provisions will make, British businesses have welcomed the agreement.
Carolyn Fairbairn, director-general of the Confederation of British Industry, called it a "breakthrough moment".
- Stepping stone? - Japan accounted for around just two percent of Britain's trade last year, government statistics show -- roughly the same as Norway.
But the deal could act as a bridge for the UK to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, also known as TPP-11 -- a free-trade deal between 11 countries including Japan, Canada, Mexico, Vietnam and Australia.
It was previously known as the Trans-Pacific Partnership (TPP) and had been slated to be the world's largest trade pact before the United States withdrew in 2017, blocking its ratification.
Truss said the deal "paves the way" for Britain to join the partnership -- but this is likely to be a complex manoeuvre that will take years.
bur-kaf/oho/rbu
Related Topics
Recent Stories
Separate coaches to be hired for ODIs, Test and T20I formats
Finance Minister calls for reforming tax system to improve country's economy
PM calls for joint efforts to check smuggling, power theft
Infinix Unveils a Vibrant New Chapter with Wahaj Ali: The face of Infinix NOTE 4 ..
PM makes two more appointments in his team
Terrorists of Shangla suicide attack will be brought to justice: Interior Minist ..
Applications Open for 6th Cycle of Start-up Incubation under the National Expans ..
Join vivo's "Light it Up" Social Media Contest in Ramadan to Win vivo V30 5G
Pakistan v New Zealand T20I series: Tickets to go on sale from today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 29 March 2024
Today Gold Rate in Pakistan 29 March 2024
Journalists call for global action to end Gaza’s humanitarian crisis
More Stories From Business
-
PTC rebuts misleading tax loss figures, seeks fair market competition
6 minutes ago -
Economy commences on better note in 2024: Finance Minister
6 minutes ago -
Gold rates up by Rs.3,800 to Rs.234,800 per tola
16 minutes ago -
SACM directs authorities to find out solution to problems of miners, crush plants
26 minutes ago -
Weekly inflation falls slightly
36 minutes ago -
Uzbekistan's Ambassador, Pakistan’s Commerce minister forge path for enhanced economic ties
36 minutes ago
-
Finance Minister calls for reforming tax system to improve country's economy
1 hour ago -
Economy commences on better note in 2024: Finance Minister
1 hour ago -
BIST 100 up at Friday’s open
2 hours ago -
Biden administration approves $60M to rebuild Baltimore bridge
3 hours ago -
China to export homegrown tunnel-boring machine to Italy
3 hours ago -
Foreigners make nearly 3 million inbound, outbound trips to China in Jan-Feb
3 hours ago