Thursday, October 22, 2020

Tariff reductions & increased protections: UK signs ‘historic’ free trade agreement with Japan

Tariff free access for British biscuits, increased geographical indications on food and drink, and tariff reductions for pork and beef exports are among the benefits of a “historic” free trade agreement with Japan.

Marking the UK’s first major trade deal post-Brexit, the agreement will increase trade between the UK and Japan by an estimated £15.2 billion.

The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu on a video call last week.

The deal is tailored to the UK economy and secures additional benefits beyond the EU-Japan trade deal, giving UK companies exporting to Japan a competitive advantage in a number of areas.

It is is also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This will give UK businesses a gateway to the Asia-Pacific region and help to increase the resilience and diversity of our supply chains.

UK businesses will benefit from tariff-free trade on 99% of exports to Japan. Government analysis shows that a deal with Japan will deliver a £1.5 billion boost to the UK economy and increase UK workers’ wages by £800 million in the long run.

As well as providing benefits for manufacturers and the tech sector, the deal brings myriad advantages for food and drink producers. This includes tariff free access for more UK goods with new and more liberal Rules of Origin allowing biscuit producers to source inputs from around the world for their exports to Japan – making it easier and cheaper for them to sell to the Japanese market.

It also increases geographical indications (GIs) from just seven under the terms of the EU-Japan deal to potentially over 70 under our new agreement, covering English sparkling wine, Yorkshire Wensleydale and Welsh lamb.

Moreover, Japan has guaranteed market access for UK malt exports under an existing quota which is more generous and easier to access than the EU quota. The UK is the second biggest exporter of malt to Japan, with UK producers exporting £37 million there each year.

Crucially, the deal lowers tariffs on pork, beef, salmon and a range of other agricultural exports. Exporters will also continue to benefit from access to the low tariffs for key food and drink products covered by quotas, such as Stilton cheese, tea extracts and bread mixes.

“This is a historic moment for the UK and Japan as our first major post-Brexit trade deal. The agreement we have negotiated – in record time and in challenging circumstances – goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries,” said International Trade Secretary Liz Truss.

“From our automotive workers in Wales to our shoemakers in the North of England, this deal will help build back better as we create new opportunities for people throughout the whole of the UK and help level up our country.

“Strategically, the deal is an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of modern free trade agreements with like-minded friends and allies.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.
















Latest news

Jenton appointed distributor for Pronova ‘Joker®’ bagging equipment

Jenton International – part of The Jenton Group – has been appointed as exclusive distributor in the UK and Eire for the range of...

SIG reduces water consumption on filling machines up to 50%

Innovative technical upgrades by SIG have now made it possible to reduce water consumption up to 50% on new and already installed third generation...

i2r adds new profiles to premium Eclipse range

Market leading aluminium foil tray manufacturers, i2r Packaging Solutions, has added two new profiles to their popular Eclipse range - a unique collection of...

Durham Box creates stylish new digital packaging solution for plant-based food brand

Leading packaging company, Durham Box, has created an end-to-end design and digitally printed packaging solution for plant-based food brand, Tiba Tempeh. Founded in 2019, the...

M&S launch Percy Pig sweetie jar packaged by Croxsons

With much of the UK in need of some good news, M&S has recently launched a Percy Pig styled sweetie jar. Currently at retail...

Loma Systems launch barcode scanner for IQ4 metal detector series

Providing an unrivalled level of experience and expertise in metal detection within food industry production lines, ‘Check & Detect’ specialists, Loma Systems, has recently...

Related news

Jenton appointed distributor for Pronova ‘Joker®’ bagging equipment

Jenton International – part of The Jenton Group – has been appointed as exclusive distributor in the UK and Eire for the range of...

SIG reduces water consumption on filling machines up to 50%

Innovative technical upgrades by SIG have now made it possible to reduce water consumption up to 50% on new and already installed third generation...

i2r adds new profiles to premium Eclipse range

Market leading aluminium foil tray manufacturers, i2r Packaging Solutions, has added two new profiles to their popular Eclipse range - a unique collection of...

Durham Box creates stylish new digital packaging solution for plant-based food brand

Leading packaging company, Durham Box, has created an end-to-end design and digitally printed packaging solution for plant-based food brand, Tiba Tempeh. Founded in 2019, the...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close