Japan trade deal a ‘significant milestone’

The Society of Motor Manufacturers and Traders (SMMT) has welcomed the announcement of a trade deal between the UK and Japan.

The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by international trade secretary Liz Truss and the Japanese foreign minister and is the UK’s first major trade deal outside the EU.

A deal with Japan could increase trade by £15.2bn, giving a £1.5bn boost to the economy and increasing UK workers’ wages by £800m in the long run.

Mike Hawes, SMMT chief executive, said: “SMMT welcomes [the] agreement in principle of a Japan-UK Free Trade Agreement. This agreement should help foster a mutually beneficial automotive trade and investment relationship between the two countries, building on a shared automotive history that stretches back more than 40 years.

“While we await the full terms of the agreement and, in particular, evidence that it will deliver in full on industry’s priorities for the progressive lifting of tariffs and reduction of regulatory barriers, the conclusion of such an FTA represents a significant milestone for our industries.

“We hope the deal can be ratified swiftly but, for both sides to benefit fully, we still need to urgently complete an ambitious and tariff-free UK-EU deal – and time is rapidly running out.”