Today was announced that the UK successfully agreed its first trade agreement post-Brexit era as an independent nation with Japan, and it is expected that will see an increase is trade flows by an estimated £15.2billion where we will see 99% of UK exports entering the Japanese market tariff-free. Not only that, UK government analysis indicates the economy will see a boost of £1.5bn and increase on UK worker's wages by £800million in the long run.
As of 2019, and according to regional trade statistics released by HMRC, trade of goods between UK and Japan had reached £15,509million, and over £6,500million for services. For the North West Region trade in 2019 was over £693million but in the 2016-19 period, actually had seen decline in its exports by 8% and did not register an increase in imports. Currently the NW region ranks 7th & 3rd in terms of its contribution to the trade in goods for exports and imports respectively.
This is therefore a great opportunity to revamp the North West and Greater Manchester trade links with Japan.
For more information about the benefits this historic agreement will bring to UK Companies, please visit the UK Gov website here
The British Chambers of Commerce Director General Adam Marshall responded to the UK-Japan Free Trade Agreement News saying:
“Businesses will warmly welcome this milestone free trade deal with Japan, which provides access to a major market for traders across the UK.
“Chambers of Commerce stand ready to work with government to ensure that the benefits of this agreement are felt by businesses on the ground. Firms will want to see the specific provisions to support small businesses replicated in future trade deals to help business communities thrive and grow in future.
“Whilst this agreement is undoubtedly cause for celebration, securing a Free Trade Agreement with the EU remains critical to the future of businesses in the UK. We urge Ministers to redouble their efforts to reach a comprehensive partnership with our largest trading partner at a crucial time in the negotiations'