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Britain has signed the first major free trade agreement with Japan since it left the European Union. It is the UK’s first major trade deal as an “independent trading nation”, the UK Department for International Trade said on Friday. It should apply from January 1, 2021 and ensure that 99 percent of British exports to the world’s third-largest economy are tax-free.
Trade with Japan could grow by around 16.5 billion euros annually with the deal, he said. The digital and data deals went “far” beyond the provisions of the EU’s trade agreement with Japan and supported British fintech companies operating in the Asian country, the ministry said.
The London Stock Exchange reacted cautiously to the news. Prices are only going up slightly. The agreement with Japan is an agreement in principle, concluded via videoconference and has not yet been signed. It is based on the trade agreement between the EU and Japan that came into force last year but no longer applies to the UK.
Britain announced its departure from the EU on January 31; the transition period lasts until the end of December. London is currently arguing with Brussels over the joint exit agreement – the British government surprisingly introduced a law in parliament this week that is likely to undermine the provisions of the Brexit treaty passed in January.
