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Trade Agreement Uk And Japan

UK Trade Minister Liz Truss said the UK expects “an additional 15 billion pounds of trade” with Japan to be secured. The agreement is also of much broader strategic importance. It paves a clear path to membership of the Comprehensive Trans-Pacific Partnership – which will provide new opportunities for the UK economy and strengthen our economic security – and strengthen links with a like-minded democracy, an important ally and a key investor in the UK. Dramatic times require drastic measures, and for Britain, the deal is better than nothing “The anti-subsidy promises of the free trade agreement between Britain and Japan are more robust than those previously accepted by the British government as part of a trade deal with the EU,” Kotsonis said. “Actually, it`s relative. Given the complexity and complexity of the EU aid framework, the anti-subsidy commitments made in the UK-Japan Free Trade Agreement should hardly be a major obstacle to the ability of one of the parties to subsidise domestic industry. For example, prohibited subsidies are limited to subsidies that could have “significant negative effects” on trade or investment between the two countries and which receive either permanent public guarantees or subsidies to defaulted enterprises without a credible restructuring plan. None of these bans should be controversial from the point of view of the UK government`s traditional approach to subsidies. “This pact is based on the EU-Japan Economic Partnership Agreement (CEPOL), which came into force in February 2019 and is the EU`s largest bilateral trade agreement,” said Dr Totis Kotsonis, an international trade expert at Pinsent Masons, the law firm behind Out-Law. I hope that this agreement can lay the groundwork for all future agreements that the United Kingdom will establish with the rest of the world. Looking at the agreement, some concessions have been agreed in the United Kingdom with respect to tariffs and rules of origin to protect Japanese investment in the automotive and rail industry. This responds to the strong demands of the Japanese government.

With regard to tariffs, the United Kingdom has agreed to the immediate reduction of tariffs on certain inputs in the automotive and rail industry. [16] With regard to the rules of origin, the agreement increases the accumulation of EU inputs in Japanese products and lowers the threshold for automotive components from 55% (under the EU-Japan EPA) to 50%. However, the diagonal trilateral accumulation with the EU is not resolved, as this would also require an agreement with the EU. It is highly unlikely that the EU will make such a concession that could give the UK a competitive advantage. The important point is that these rules cover only certain target areas and are far from exhaustive.

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