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UK, Japan Agree to FTA

The United Kingdom and Japan agreed Sept. 11 to a free trade accord that will reduce Japanese tariffs on a range of U.K. agricultural products and benefit exporters of Japanese cars and auto parts. The U.K. said the deal, the first major trade agreement for it as a nation independent of the European Union, will eliminate tariffs on 99% of exports to Japan.

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U.K. Trade Secretary Liz Truss said the deal “goes far beyond the existing EU deal,” and applauded negotiators for agreeing to terms in “record time and in challenging circumstances.” The two sides want to sign the agreement, completed after three months of negotiations (see 2006090025), “as soon as possible,” Foreign Minister Toshimitsu Motegi said, according to an unofficial translation of a news conference.

Motegi said Japanese exporters will see increased U.K. market access in a range of areas, specifically pointing to the auto parts sector. Japanese companies will also benefit from similar tariffs on a range of manufacturing and agricultural goods as are in its existing deal with the EU.

Truss said U.K. meat exporters will see significant benefits, adding that the deal will reduce Japanese tariffs on pork, beef, salmon and other agricultural exports, such as grains, “cheese, tea extracts and bread mixes.” She said “it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries.”

Both sides also touted the accord’s provisions on e-commerce, rules of origin and intellectual property protections. “British businesses can now be confident that their brands and innovations will be protected,” Truss said, adding that the agreement goes “beyond the EU on provisions that tackle” online infringement of intellectual property rights, such as film and music piracy.