Uk Japan Economic Partnership Agreement

The UK Japan Economic Partnership Agreement: What You Need to Know

On October 23, 2020, the United Kingdom and Japan reached a historic agreement on a new trade deal called the UK-Japan Economic Partnership Agreement (UKJEPA). The agreement aims to enhance economic relations between the two countries following the UK`s exit from the European Union and to promote free trade, investment, and cooperation in various areas.

The UKJEPA covers a wide range of sectors, including agriculture, food and drink, automotive industry, healthcare, digital trade, financial services, and creative industries. It also includes provisions on intellectual property, e-commerce, and regulatory cooperation, which are crucial for facilitating trade and investment. Here are some key highlights of the agreement:

Tariff-free trade

The UKJEPA eliminates tariffs on 99% of UK exports to Japan, including beef, lamb, and pork, which will benefit UK farmers and producers. It also removes tariffs on Japanese goods such as electronics, which will lower costs for UK consumers. This will boost bilateral trade, which is already worth around £30 billion.

Mutual recognition of standards

The agreement includes provisions for mutual recognition of standards and conformity assessments, which will promote regulatory alignment and reduce barriers to trade. This means that UK and Japanese businesses will be able to rely on each other`s product testing and certification, reducing the need for duplication and additional costs.

Digital trade

The UKJEPA promotes digital trade by prohibiting data localization requirements, which restrict the flow of data across borders. This will benefit UK businesses that rely on digital services and platforms, such as e-commerce, cloud computing, and data analytics. It also includes provisions on intellectual property protection, which will safeguard innovation and creativity.

Investment

The agreement includes investment protection and dispute settlement mechanisms, which will give investors more certainty and confidence in doing business in the UK and Japan. This will encourage greater investment flows and create more jobs and growth in both countries.

Conclusion

The UKJEPA is a significant milestone in the UK`s post-Brexit trade policy and its relations with Japan. It demonstrates the UK`s commitment to promoting free trade and pursuing new opportunities in Asia. It also provides a template for future trade agreements with other countries, including the United States, which the UK is currently negotiating with.

As the world recovers from the COVID-19 pandemic and faces new challenges, the UKJEPA will play a vital role in supporting economic recovery and growth. It will strengthen the UK-Japan partnership and create new opportunities for businesses and consumers on both sides of the Pacific.