Japan gives UK just six weeks to secure post-Brexit trade deal
Japan has given the UK a mere six weeks in which to strike a post-Brexit trade deal, which would be one of the shortest timetables for trade negotiations in history.
Tokyo’s chief negotiator Hiroshi Matsuura told the Financial Times that both parties will have to “limit their ambitions” when it comes to agreeing the deal, Britain’s first in more than 40 years.
Most trade deals take years to agree, but Matsuura said that the UK-Japan negotiations would have to be wrapped up by the end of July if they were to be ratified by Japan’s parliament this year.
“To avoid a gap in January, we must pass this in the autumn session of the Diet [the Japanese parliament]”, he said.
“That means we must complete negotiations by the end of July.”
Securing a post-Brexit free trade deal with Japan has been among the highest priorities for the government’s “global Britain” agenda.
Last month City A.M. revealed that an agreement could provide a £383m boost to London’s economy every year.
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The talks with Japan are running alongside already active negotiations with the EU and the US.
Although the deal will be based on the existing agreement between the EU and Japan, the UK has pushed for further concessions, including the “reduction or elimination of Japanese tariffs on goods and agriculture and “ambitious commitments on market access” for UK services.
However, the short timetable might leave the UK disappointed in some of these aims, highlighting the challenge Boris Johnson’s government will face in securing favourable deals before the Brexit transition period ends on 31 December.
A Department of International Trade official told the FT: “We will be fighting for British farmers’ access to the Japanese market as part of a deal along with ambitious digital and data chapters.”
The capital could be one of the biggest beneficiaries of the latter focuses, as international trade secretary Liz Truss told City A.M.
“Its world-renowned financial and professional services providers will benefit from cutting edge provisions on digital trade and intellectual property, bringing a boost for tech firms across the UK”, she said.