As one of the largest economies in the world, Japan has always been a prime target for trade agreements. In recent years, the United Kingdom has been keen to forge a new trade agreement with Japan following its exit from the European Union. So, does the UK have a trade agreement with Japan? Let`s find out.
Firstly, it`s important to note that the UK and Japan have had a trade relationship for many years. In 2018, total trade between the two countries was worth £31.4 billion ($40 billion), with Japan being the UK`s 12th largest trading partner. However, the UK`s departure from the EU in 2020 meant that it could no longer rely on the EU`s trade agreements with Japan.
To fill this void, the UK began negotiations for a new trade agreement with Japan. These negotiations began in June 2020 and were concluded in September 2020. The resulting UK-Japan Comprehensive Economic Partnership Agreement (CEPA) was signed by both countries on October 23, 2020.
The UK-Japan CEPA is a comprehensive trade agreement that covers a wide range of areas, including goods, services, digital trade, intellectual property, and sustainable development. It also includes provisions on data protection and financial services. Under the agreement, the UK secured benefits such as tariff reductions on British goods entering Japan, as well as enhanced opportunities for UK businesses in the Japanese market.
One of the key benefits of the UK-Japan CEPA is that it provides continuity in trade between the UK and Japan following the UK`s departure from the EU. It also strengthens the UK`s relationship with Japan and provides a foundation for future cooperation.
In conclusion, yes, the UK does have a trade agreement with Japan. The UK-Japan CEPA was signed in October 2020 and covers a wide range of areas, providing benefits for both countries. It is an important step in securing the UK`s position as a global trading nation outside of the EU.
