+ 2020 Ew by Sector data +
+ HVC info +
Japan is an important trade and investment partner for the UK. The UK exported £14.7 billion of goods and services to Japan in 2019 (2.1% of all UK exports) and imported £15.4 billion (2.1% of all UK imports). A 2015 estimate indicated that 167,000 UK jobs were supported by exports to Japan. Japan was the 6th largest investor in the UK in 2018, with £89.2 billion invested while the UK was the 4th largest investor in Japan with £17.5 billion invested.
The deal could benefit more 600 businesses in Yorkshire and the Humber that exported goods worth more than £165m to Japan last year.
More liberal Rules of Origin to enable more traders to access the market tariff-free.
Sectors set to benefit from a deal include textiles, agriculture, and the services industry. Now that we have left the EU, we can also make more progress in areas such as the free flow of data, which will support emerging fields such as artificial intelligence (AI) and the UK’s position as a technology superpower.
Food & Drink
Increase of protected geographical indicators from 7 to over 70 e.g. Yorkshire Wensleydale.
Tariffs on Food & Drink gradually reducing, for instance "cheddar cheese MFN 29.8% reducing gradually to 0% by 2033."
"Total UK agri-food exports to Japan were worth around £402 million in 2019-20, of which £271 million was beverages, spirits and vinegar."
Financial & Professional Services
The UK exported £1.5 billion of business services to the Japan, including in key areas of UK strength such as accountancy, engineering and legal services. An FTA with Japan could allow professionals to move more easily and support recognition of professional qualifications, for example in accountancy and the legal profession.
The UK exported £4.1 billion of financial services to Japan,[2018, ONS] and we expect that the sector could benefit from reduced barriers to cross-border trade and investment, as well as co-operation between the two countries on financial regulation.
Technology & Digital Economy
Enhanced protection of data between Japanese and British consumers, enabling data to flow between us whilst maintaining the highest data protection standards
Scoping assessment suggests that UK agriculture could benefit from an FTA with Japan through a combination of reduced tariffs and red tape for food and drink exports.
Healthcare & Life Sciences
January 2021 report from the DIT (20 pages)
Some 59% of all Japanese goods imported into the UK and 44% of all UK goods exported into Japan are used in supply chains. So as well as reducing the price of consumer goods, lower tariffs could also cut the costs of domestic production in both countries.