The United Kingdom and Japan have reached consensus on the main points for a trade agreement that they hope to formalize in late August, British Foreign Trade Minister Lizz Truss said today.
After two months of dialogue involving about 100 negotiators, mostly via videoconference, this week's visit to London by Japanese Foreign Minister Toshimitsu Motegi accelerated the process that the British Government intends to complete before the end of the negotiation period. Brexit transition on 31 December.
One of the main points of friction between the two countries is Tokyo's insistence on reducing rates for Japanese vehicle exports.
For its part, London has requested better access to the Japanese financial services market, changes in data protection regulations and facilities for agricultural exchanges.
"The negotiations were positive and productive, and we reached a consensus on the main elements of an agreement, including ambitious provisions in areas such as digital services, data and financial services," said Truss.
The minister assured that the agreement she hopes to formalize with Japan goes "significantly beyond" the trade agreement that the Japanese country has with the European Union.
The United Kingdom maintains numerous active fronts of negotiation with third countries to replace the Community treaties that it has adopted so far, before definitively breaking ties with the European bloc at the end of 2020.
The value of trade between the UK and Japan reached 29.500 billion pounds in 2018 (32.660 million euros).
According to the calculations of the Ministry of International Trade, a bilateral agreement with “substantial tax liberalization” could increase “British long-term” GDP by around 0,07%, equivalent to £ 1.500 million (1.660 million) euros).