European Union to veto trade deal if United Kingdom reneges on Brexit agreement

Image Bloomberg

The government said United Kingdom businesses will benefit from tariff-free trade on 99% of exports to Japan and that it will give British businesses a gateway to the Asia-Pacific region.

Truss noted that the agreement was negotiated in record time and in challenging circumstances and goes far beyond the existing European Union deal.

Japan's Foreign Minister Motegi Toshimitsu and the UK International Trade Secretary Elizabeth Truss had an online meeting on Friday.

UK Government Minister for Scotland, David Duguid said:It's great news that the UK Government has agreed a trade deal with Japan.

The deal with Tokyo will come at a welcome time for Prime Minister Boris Johnson as his move to unpick parts of the Brexit withdrawal treaty risks the collapse of trade talks with Brussels.

The agreement also secures benefits beyond the EU-Japan trade deal, including a way for North West products to be officially recognised in the Japanese market. By increasing geographical indications (GIs) from just seven under the terms of the EU-Japan deal to potentially over 70 under the UK-Japan agreement, this could lead to improved recognition of key UK brands in the Japanese market, such as Cumberland sausages. By contrast, exports to Japan equaled just 1.9%.

She added that, strategically, the deal was an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of free trade agreements. It stands to get the lions share, 80%, of the total estimated £15bn boost to trade for both countries.

EU to veto trade deal if UK reneges on Brexit agreement
The UK strikes post-Brexit trade agreement with Japan

Under the deal, around 99 percent of exports between the two nations will be tariff-free.

Big Japanese investors in Britain such as auto makers Nissan and Hitachi would benefit from reduced tariffs on parts, it added.

Iain Young, sales director at AVID Technologies, said: "Japan is not now a market we export to, but it is a market we are very interested in developing".

Our non-EU trade, in contrast, generates a surplus - and having grown much faster than UK-EU trade for some time, it now accounts for a clear majority of British goods and services sold overseas.

Motegi said the two sides have agreed on rules for e-commerce and other fields that are more comprehensive than what's in place under the Economic Partnership Agreement that Japan has with the EU.

Strong tariff reductions for pork and beef exports - we have negotiated a deal that sees tariffs fall on pork, beef, salmon and a range of other agricultural exports.

The UK Government and the Scottish Government have been invaluable in assisting us with attending and setting up events at British Embassies, both in Japan and at global trade shows attended by Japanese trade buyers.


Related:

Comments

Latest news

Oxford University's trials to resume days after being halted
The vaccine was initially developed by Oxford University after the coronavirus pandemic began this year. AstraZeneca, based in Cambridge, said it could not disclose further medical information.

Dozens of Amazon Basics products could pose a safety risk, report says
However, that might be what consumers are getting when purchasing an AmazonBasics item. It also directed CNN to a blog post it published in response to the investigation.

Samsung Galaxy M51 With 7,000mAh Battery Launched at Rs 24,999
Coming to the camera, there is a quad-camera setup in the rear where the main sensor is of Sony IMX682 64MP with an f/1.8 lens. Samsung Galaxy M51 carries a price tag of Rs. 24,999 for the 6GB RAM variant, while its 8GB RAM option comes at Rs. 26,999.

Diana Rigg, actress of ‘The Avengers’ and ‘Game of Thrones’ dies
Actress Rachael Stirling , her daughter confirmed the news and stated that Dame Diana died because of cancer, diagnosed in March. She also said that she spent her last months happily, filled with love, happiness and pride in her professional life.

Rockets’ House leaving bubble after having unauthorized guest in hotel room
The league says there was "no evidence" that other players or staff had contact with the guest or were involved in this incident. That might be too far gone after Swipe Sports noticed that his wife scrubbed every photo she had of him off of her Instagram.

Other news