Japan And The UK Signed An Economic Partnership Agreement, Which Is To Come Into Force In January 2021

Japan and the United Kingdom officially signed the Economic Partnership Agreement (EPA) on October 23, 2020 to reduce and remit import tariffs on goods, which is the first trade agreement signed by the United Kingdom after Brexit. The Japanese and British EPA will take effect on January 1, 2021, after being approved by the two parliaments.

At present, the tariff preferences between Japan and the EU are applicable to the trade between Japan and the UK, and the transition period of the UK's Brexit will end at the end of the year. Therefore, Japan and the UK have signed another EPA, which roughly follows the tariff preferences of the Japan EU EPA.

The Kyodo News Agency reported that the signing ceremony of the Japan UK EPA was held in the Tokyo Metropolitan this morning, attended by Foreign Minister Minchong Mao and British Secretary of International Trade Liz Truss.

After the Japan UK EPA takes effect, 94% of the goods exported from Britain to Japan and 99% of the goods exported from Japan to Britain will be abolished in the future.

In terms of industrial products, Japan will cut tariffs on cars exported to the UK in stages, and like the Japanese and European EPA, tariffs will be completely abolished in 2026. For projects such as railway carriages and parts, tariffs will be abolished in real time as of the effective date.

The Japanese Economic News reported that, in terms of agricultural products, the United Kingdom hopes to set new preferential tariffs on British blue cheese. Although Japan did not agree to set new preferential tariff items, it agreed that if the import volume from the EU is small, British products can apply lower tariffs.

The report points out that the Japan UK EPA is the first trade agreement signed by the UK with major countries after Brexit. The British government also expressed its desire to join the Trans Pacific Partnership, TPP).