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The UK has signed its first major trade deal as an independent nation, with confirmation last Friday that an agreement has been reached with Japan.
UK government estimates suggest the deal will increase trade between the two countries by £15.2bn over the next 15 years.
Describing it as an “historic moment”, Trade Secretary Liz Truss also claimed that the UK has managed to go far beyond the existing deal that the EU has with the world’s third largest economy.
“It secures new wins for British businesses in our great manufacturing, food and drink, and tech industries,” she said.
It will probably be early October before the actual legal texts of the UK-Japan deal are published
That has been met with some scepticism by trade experts who believe that the UK deal largely mirrors that secured by the EU in late 2018, which the UK can access while still a member state. It will probably be early October before the actual legal texts of the UK-Japan deal are published, and the claims can be fully assessed.
The EU deal with Japan kicked-in from 1 February 2019, and created significant opportunities for the agri-food industry. Japan is the world’s biggest importer of dairy products and is the third largest beef importer, but has traditionally been a market protected by high tariffs.
Cheese
Under the deal, the Japanese agreed to cut a 29.8% tariff on hard cheeses down to 0% over the next 15 years as well as allowing in more skimmed milk, butter and whey. Tariffs would also be removed on EU pork, while a 38.5% tariff on beef would be reduced to 9% over the next 15 years.
In the first 10 months of the new arrangement, EU meat exports to Japan are up 12%, dairy exports have increased 10.4% and frozen beef exports have tripled.
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