10 benefits of the UK-Japan trade deal

Today is an historic moment for UK trade with the Agreement in Principle (AIP) reached for the UK-Japan Comprehensive Economic Partnership – the UK’s first major trade agreement as a newly independent trading nation. Colleagues across the Department for International Trade (DIT), both here and in Japan, have worked incredibly hard to bring this moment to fruition.   

The benefits are clear. Here are the top ten. 

1. Cutting-edge digital & data provisions that go far beyond the EU-Japan deal, making it easier for UK tech companies to export to Japan, like Revolut and Transferwise. 
2. Improved market access for UK financial services, including greater transparency and streamlined application processes for UK firms seeking licences to operate in Japan. Financial services are our biggest export to Japan, accounting for 28% of all UK exports. 
3. Tariff-free access for more British goods thanks to new Rules of Origin, which will benefit exports such as clothing and biscuits, making it easier and cheaper to export to the Japanese market.  
4. New protections for iconic British goods – expanding Geographical Indications from 7 to potentially more than 70 products such as Yorkshire Wensleydale, English Sparkling Wine, and Welsh lamb.  
5. New protections for UK creative industries – going beyond the EU on provisions that tackle online infringement of IP rights, such as film and music piracy.  
6. Improved mobility for business people securing more flexibility for Japanese and British companies to move talent into each country.
7. Paving the way for accession to Trans-Pacific Partnership (CPTPP), one of the world’s largest free trade areas, where 95% of goods are tariff free.  
8. Supporting UK car and rail manufacturing jobs at major investors in the UK like Nissan and Hitachi, through reduced tariffs on parts coming from Japan, streamlined regulatory procedures, and greater legal certainty on their operations. 
9. More generous market access for malt producers under a quota which is more generous and easier to access than the EU quota. The UK is the second biggest exporter of malt to Japan, worth £37m each year.  
10. Strong tariff reductions for pork, beef and salmon exports and a range of other agricultural products. Continued low-tariff access for stilton cheese. This forms a pathway to further market access under CPTPP, which has been committed to by Japan as part of our agreement.    

You can read more about the agreement on gov.uk where we have outlined just how much this free trade deal will benefit all regions of the UK and strengthen our trade partnership with our Pacific partners.