Free Trade Agreement (FTA) is an agreement between two or more countries to eliminate barriers to trade and promote cross-border economic cooperation. The UK has been exploring opportunities to secure FTAs with various countries since it left the European Union in January 2020. One such agreement that the UK government has been negotiating is the UK-Japan Comprehensive Economic Partnership Agreement.
The UK-Japan FTA is aimed at boosting trade and investment between the two countries, and it could potentially bring enormous benefits to businesses in both the UK and Japan. As part of the agreement, the UK will eliminate tariffs on Japanese cars and other products, while Japan will do the same for UK manufacturing products such as whiskey and ceramics. The FTA could also create new opportunities for UK service providers in sectors such as financial services, digital, and professional business services.
The UK-Japan FTA was signed in October 2020 and came into effect on January 1, 2021. The agreement is a significant achievement for the UK government, as it is the first major trade deal that the country has signed since leaving the European Union. The FTA is intended to act as a blueprint for future UK trade deals with other countries. So far, the UK government has been in talks to secure FTAs with the likes of the US, Australia, and New Zealand.
The FTA is also a critical part of the UK government`s strategy to make the country a leading hub for international trade. The government has set an ambitious target of striking trade deals with 80% of the UK`s non-EU trading partners by 2022.
Businesses in the UK can take advantage of the opportunities that the FTA presents by exploring new markets in Japan. For instance, UK service providers can tap into the Japanese market, which is known for its advanced technology and innovation, by offering high-quality services. Similarly, UK manufacturers can export their products tariff-free to Japan, which is home to a population of over 126 million people.
In conclusion, the UK-Japan FTA is a significant achievement for the UK government and presents enormous opportunities for businesses in both countries. The agreement is a step towards the UK`s ambition to become a leading hub for international trade and serves as a blueprint for future UK trade deals with other countries. UK businesses should explore new markets in Japan and take advantage of the FTA`s benefits to boost their exports and bottom line.