By Elishya Perera
LONDON (CWBN)_The UK signed an economic partnership agreement with Japan today (Oct 23), marking a historic moment, as the UK’s first major trade deal as an independent trading nation in the post-Brexit.
The UK-Japan Comprehensive Economic Partnership Agreement (CEPA), which is expected to generate benefits for Digital and Data, Financial Services, Food and Drink, and Motor Vehicle Industries, was signed by British Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu in Tokyo this morning.
According to a statement issued by the British government in Tokyo, the estimated boost to trade between the UK and Japan is over £15 billion, with long term economic benefits that are crucial to ‘build back better’ from Covid-19.
“Today is a landmark moment for Britain. It shows what we can do as an independent trading nation, as we secure modern and bespoke provisions in areas like tech and services that are critical to the future of our country and the reshaping of our economy,” Truss said. “It (the agreement) opens a clear pathway to membership of the Comprehensive Trans-Pacific Partnership… and strengthens ties with a like-minded democracy, key ally and major investor in Britain.”
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), one of the world’s biggest free trade areas, covering 13% of the global economy and more than £110bn of trade in 2019.
CPTPP, signed in March 2018, is a free trade agreement (FTA) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. It evolved from the Trans-Pacific Partnership (TPP), which never entered into force due to the withdrawal of the United States.
In a meeting with Japanese Economy Minister Yasutoshi Nishimura later in the day, Truss expressed Britain’s interests in joining the TPP trade pact. “If UK submits an application to join the TPP-11 next year, Japan will fulfill our role as a chair nation,” Nishimura said.
Britain formally left the European Union in January this year, and has been negotiating trade agreements with countries around the world. The government intends to secure free trade agreements with countries covering 80% of UK trade by 2022.
