Britain and Japan sign free trade agreement or inject momentum into UK trade talks

Summary

[Gran Bretaña y Japón firmaron un acuerdo de libre comercio o inyectaron un impulso a las negociaciones comerciales del Reino Unido]Britain and Japan formally signed the “UK-Japan Comprehensive Economic Partnership Agreement” on the 23rd. This is the first major free trade agreement signed by the UK after “Brexit”. When the UK and its biggest trading partner the European Union and other parties start trade talks, it can inject momentum into the UK to further the negotiations. (Xinhua News Agency)

Britain and Japan formally signed the “UK-Japan Comprehensive Economic Partnership Agreement” on the 23rd. This is the first major free trade agreement signed after UK “Brexit”, and the UK has negotiated with the EU, its biggest trading partner, and elsewhere.negotiationRight now, he may be able to inject momentum for Britain to advance the negotiations.

The British government has always emphasized that after Brexit, it will have the opportunity to freely negotiate and sign trade agreements with other countries to create a globalized Britain. Since “Brexit” in January this year, the United Kingdom has started negotiations with the European Union, Japan, the United States, Australia, New Zealand, etc. The “UK-Japan Comprehensive Economic Partnership Agreement” is the first piece of good news.

Analysts believe that since the volume of trade between Britain and JapanForeign tradeThe symbolic significance of this agreement far outweighs the economic benefits, it sends a signal to the world that the UK is capable ofinternational tradeNegotiate and reach agreements with the main business partners.

Compared to trade between Great Britain and Japan, the volume of trade between Great Britain and Europe is huge.Statistics, In 2018To exportThey accounted for 46% of UK exports,to importThey accounted for 54% of total UK imports. Britain and the EU started negotiations on future relations with the free trade agreement as the core in March, and hope to reach an agreement during the transition period. Initially, the British side planned to clarify the general framework of the agreement in June, but after several rounds of negotiations, the two sidesThe competitive environmentThe key differences with the fishing sector have not yet been resolved.

After EU leaders met in Brussels on October 15, the British side once declared that the EU summit marked the end of negotiations between the two sides. If the EU does not fundamentally change its position, there is no need for further talks. After the EU declared that the agreement requires “commitment” and “being willing to discuss on the basis of the legal text of the agreement”, the UK agreed to restart negotiations and will conduct the first phase of negotiations with the EU in London on 22 to the 25th. Both parties acknowledged that given the rebound in the new corona epidemic, reaching a trade agreement will help avoid a worsening of the economy, but the two parties did not rule out the possibility of a failure of the negotiation.

If the UK and Europe fail to reach a trade deal during the transition period, bilateral trade will return to the world from 2021.Business organizationIn the framework, border inspections and tariffs need to be re-implemented, which will lead to tradecostincrease UK and EUcompanysupply chainThey will face problems, trucks will have to queue to clear customs and some manufacturers will even have to changeprovider。

British Food and Drink FederationExecutive DirectorIan Wright said, “If you can’t reach an agreement,consumptionThose who will pay a high price. EU food and drink imports will face a high average tariff of 18%, which will drive up animal prices. The epidemic will amplify the impact of ‘no-deal Brexit’. “

Investment Bank of the USAGoldman sachsthe companyIt was previously estimated that if the UK and Europe fail to reach a trade agreement, and the impact of the epidemic overlaps, the two sides may have nearly 1 trillion yuan as of 2021.American dollarTrade is “in chaos.”

Signing a trade deal with the United States quickly after “Brexit” is also a major issue for the British government.objectives. However, there are significant differences between the United States and Great Britain on the specific content of the agreement. The British side is concerned about the United States, which is below EU standards.productEntered the UK and refusedinvestmentThe opening of the British National Health System will create obstacles to negotiations between the two parties.

Furthermore, as a former member of the European Union, the UK has benefited from some 40 EU trade agreements, covering more than 70 countries and regions around the world. However, these agreements will no longer apply to the UK once the ‘Brexit’ transition period ends at the end of this year. Therefore, in recent years, the UK has stepped upbilateral tradeThe concerted countries “copy” the EU trade agreement to continue to maintain the existing preferential trade terms with these countries.

(Source: Xinhua News Agency)

(Editor in charge: DF118)