Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
September 11, 2020 09:28 AM

UK agrees to post-Brexit trade deal with Japan

Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bloomberg

    Cars produced at Nissan's factory in Sunderland, England.

    LONDON/TOKYO -- Britain has secured its first big post-Brexit trade deal, an agreement with Japan that it hailed as "historic" as it struggles to agree on trade with its closest trading partners in the European Union.

    Since formally leaving the EU in January, Britain has focused on negotiating new trade deals with countries around the world, although experts say they are unlikely to replace exports lost to the bloc if a deal cannot be reached with Brussels.

    Big Japanese investors in Britain such as Nissan and supplier Hitachi will benefit from reduced tariffs on parts, the British government said.

    The deal reduced Britain's tariffs on Japanese cars in stages to zero by 2026, which is the same as in the Japan-EU trade agreement. The issue of automobiles was one of Japan's main interests.

    "This is a historic moment for the UK and Japan as our first major post-Brexit trade deal," British trade minister Liz Truss said on Friday.

    "The agreement we have negotiated -- in record time and in challenging circumstances -- goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries."

    The deal had been widely seen as one the easiest within reach for London, based largely on the EU-Japan agreement which covers Britain until the end of December, when a Brexit transition period ends.

    The British automotive trade group SMMT said Friday that it welcomed the deal.

    "While we await the full terms of the agreement and, in particular, evidence that it will deliver in full on industry’s priorities for the progressive lifting of tariffs and reduction of regulatory barriers," the group said in a statement, "the conclusion of such a [free-trade agreement] represents a significant milestone for our industries."

    Japanese Foreign Minister Toshimitsu Motegi said the talks had been difficult "but we managed to reach an agreement in principle with extraordinary speed, in just three months."

    He said Japan was aiming for the deal on Jan. 1.

    Japan has used Britain as a pro-business gateway into the rest of the EU, but some Japanese politicians have expressed concerns that a so-called no-deal Brexit might affect this.

    Britain said the deal meant that 99 percent of its exports to Japan would be tariff-free, and that it could increase trade by 15.2 billion pounds ($19.4 billion) in the long run, compared with 2018.

    'Important step'

    Total trade between Britain and Japan was worth about 29.5 billion pounds in 2018, eclipsed by nearly 700 billion pounds of exports and imports between Britain and the EU.

    Britain said digital and data provisions in the agreement would help British tech firms operating in Japan.

    Financial services firms, coat-makers and food producers would benefit from the agreement, and it represented an "important step" towards Britain joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the Asia-Pacific region, it said.

    Other British business groups welcomed the deal, but underlined the need for a trade deal with the EU.

    "We hope the spirit of both ambition and compromise will help land further continuity deals such as with Turkey and Canada, as well as an agreement with the EU, which is of utmost importance to ... members," said Allie Renison, head of Europe and Trade Policy at the Institute of Directors.

    The SMMT said in its statement that “we still need to urgently complete an ambitious and tariff-free UK-EU deal -- and time is rapidly running out.”
     
    The EU has demanded that Britain scrap a plan to break the divorce treaty signed by both sides in January, but British Prime Minister Boris Johnson's government has refused. The EU says this could sink four years of Brexit talks.

    RECOMMENDED FOR YOU
    Why are electric car names so bad?
    Recommended for You
    Toyota bZ4X driving down steep incline 2022
    Why are electric car names so bad?
    London taxi coventry factory 2023
    London black cab owner Geely explores raising fresh funds
    China electric car sales
    China set to extend EV tax incentives as sales growth slows
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us