UK-Japan Comprehensive Economic Agreement

Government assessment suggests the deal may only grow the UK economy by 0.08% but requires the UK to drop key environmental commitments as part of the deal including those aimed at reducing the production of palm oil, a key driver of deforestation in Asia.

The UK Trade and Business Commissions has published a comprehensive assessment of the state of UK trade containing 114 recommendations to remove barriers to growth and prepare the UK economy for the challenges and opportunities of the next decade.

Responding to confirmation that the new Australia and New Zealand trade deals will come into effect this month, Layla Moran MP, member of the cross-party UK Trade and Business Commission, said

Responding to the announcement that the UK Government has reached an agreement to join the CPTPP) Caroline Lucas MP, member of the UK Trade and Business Commission, said:

In a UK first, an economy-wide consultation has been launched to gather evidence on the biggest issues facing all industries in the post-Brexit landscape and as the UK Government negotiates new trade agreements.

This sessions looked at the potential impact of UK Free Trade Agreements, the UK Trade and Business Commissioned examined the deal already in place with Japan and the negotiations that are under discussion with India. By total GDP, Japan is the largest country which the UK has a relationship with, and India is the largest country which the UK was actively negotiating with at the time of the meeting .

Witnesses provided analysis on the UK government’s approach, what benefits are expected from the deals or had already been delivered, and how different parts of the UK economy were likely to benefit.

The UK government had announced the completion of two entirely new Free Trade Agreements, with Australia and New Zealand by the time of this meeting, and there has been the suggestion it may complete others including joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The UK is a major manufacturing power in the world, with particular strengths in cars, engineering products and aerospace among others. That these no longer employ such large numbers predominantly reflects higher productivity, and has been seen in all developed countries.

This session of the Trade and Business Commission looked at the transition to a green economy, and the role of trade policy in this ahead of the COP26 summit in Glasgow, as these topics saw growing domestic and international attention.

Trade agreements are negotiated by national governments, though topics covered are likely to include those for which responsibility lies with devolved authorities. This is an issue faced across the world given that those topics extend far beyond tariff reduction and can see regulations bound by treaty. In the UK devolved government responsibilities affected are likely to include agriculture, services provision such as professional qualifications, and public procurement, but many more such as Scotland’s minimum alcohol pricing could be an issue.