Japan And Britain Sign The Economic Partnership Agreement, Which Will Come Into Force In January 2021

Japan and the United Kingdom formally signed the economic partnership agreement (EPA) on October 23, 2020, which is the first trade agreement signed by Britain after brexit. The Japanese and British EPA will come into force on January 1, 2021, after being approved by the two countries' parliaments.

At present, the trade between Japan and the United Kingdom is subject to the preferential tariff provisions between Japan and the European Union, and the transition period for brexit will end at the end of the year. Therefore, Japan and the UK have signed another EPA, which basically follows the tariff preference provisions of the Japan EU EPA.

Japan's Kyodo News Agency reported that the signing ceremony of the Japanese British EPA was held in Tokyo this morning, attended by foreign minister mauki minchong and British International Trade Minister Liz truss.

After the entry into force of the Japan UK EPA, 94% of the goods exported from the UK to Japan and 99% of the goods exported from Japan to the UK will be abolished in the future.

In terms of industrial products, Japanese cars exported to the UK will be subject to tariff reduction in stages and, like Japan and Europe EPA, will completely abolish tariffs in 2026. The tariff will be abolished in real time as soon as it comes into effect.

Japan Economic News reported that the United Kingdom hopes to establish a new preferential tariff on British blue cheese. Although Japan has not agreed to set up a new preferential tariff item, it has agreed to apply a lower tariff to British products if the import volume from the EU is small.

The report pointed out that the Japanese British EPA is the first trade agreement signed between Britain and a major country after brexit. The British government has also expressed its desire to join the trans Pacific Partnership (TPP).