UK formally inks first post-Brexit trade deal with Japan amid struggle with EU

The United Kingdom has formally inked a trade deal with Japan, for the first time as an independent country from the European Union (EU), while not even close to striking a deal with its closest trading partners in the bloc.

British Trade Secretary Liz Truss announced the deal at a ceremony in the Japanese capital, Tokyo, on Friday.

“How fitting it is to be in the land of the rising sun to welcome in the dawn of a new era of free trade,” she said.

“This is the first new free trade deal to be agreed since the UK once again became an independent trading nation,” she added.

Britain formally left the EU in January.

Ever since, it has focused on negotiating new trade pacts with countries around the world.

The deal with Tokyo was signed under an agreement reached between Truss and Japanese Foreign Minister Toshimitsu Motegi in September.

Confusion reigns over UK-EU post-Brexit trade talks

Downing Street and Boris Johnson have communicated confusing messages on the status of post-Brexit trade talks with the EU.

London considers the move an important demonstration of its ability to reach new trade deals outside the EU.

“It used to be said that an independent UK would not be able to strike major trade deals or they would take years to conclude,” said Truss.

"But today we prove the naysayers wrong with this groundbreaking, British-shaped deal that was agreed in record time,” she added.

FM Motegi, for his part, said that the deal was signed in less than five months from the start of negotiations.

“This is a manifestation of the determination of Japan and the United Kingdom to carry on vigorously promoting free trade,” said the minister.

He said they have agreed to work together so that the deal will come into force on January 1, 2021.

Under the deal, some 99% of Britain’s exports to Japan would be tariff-free.

It removes Britain’s tariffs on Japanese cars in stages to zero in 2026, which is the same as in the Japan-EU trade agreement.

It will also increase trade by 15.2 billion pounds ($19.9 billion) in the long run, compared with 2018.

Motegi further said a deal between London and the EU was still crucial for Japanese business.

PM appears to accept Britain will exit Europe without a deal

The prospect of the UK leaving the European Union without a deal is becoming an increasingly realistic possibility as talks have yet again stalled, with the British Prime Minister appearing to accept the fact that Britain is going to depart Europe without a deal.

Britain struck the deal with the Asian country as it is still continuing to struggle to agree on a trade deal with the bloc.

The trade negotiations are stalled between Brussels and London over major disagreements on fishing rights and state help for businesses.

British Prime Minister Boris Johnson declared earlier that the talks were over unless the bloc made a “fundamental” change of policy.

The British government, however, said on Wednesday that it will resume talks with the EU at an “intensified” pace, in the hope of striking a deal within weeks so as to avoid a messy economic breakup at the end of the year.

Japan welcomes UK membership of CPTPP trade bloc

The Japanese diplomat also said Tokyo welcomes London’s interest in joining the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) free trade deal.

He said Japan intends to provide the necessary support for Britain's membership.

Japan is already a member of the CPTPP, which also links Canada, Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The British diplomat also expressed his country’s strong interests in joining the CPTPP, according to the Japanese Economy Minister Yasutoshi Nishimura.

In a meeting with Nishimura later in the day, Truss called for Britain’s presidency of the Group of Seven (G7) and Japans’ chairmanship of the Trans-Pacific Partnership, (TPP-11) next year.

She explained that this would challenge rising protectionism and make the case for free trade.

“If [the] UK submits an application to join the TPP-11 next year, Japan will fulfill our role as a chair nation,” he said.

Truss has already said Britain hoped to formally apply to join the CPTPP early next year.

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