Britain published its negotiating objectives for a free trade agreement with Japan, with talks beginning shortly via video conferencing, the Department for International Trade (DIT) said Wednesday.

The agreement, based on the existing (European Union) EU-Japan Economic Partnership Agreement (EPA), could benefit Britain with a 1.5 billion pounds (1.8 billion dollars) boost -- around 0.07 percent of its GDP -- while increasing trade flows between the two countries by 15.2 billion pounds (around 18.6 billion U.S. dollars), according to the department.

British manufacturers of textiles and clothing, and professional and financial service providers are expected to be among the biggest winners of lowering trade barriers with Japan.

The DIT also views the trade talks with Japan as "the first logical step" towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a replacement pact after the United States exited the Trans-Pacific Partnership (TPP) agreement.

"Negotiations with Japan are an important step in CPTPP accession, a key UK priority, which will help us diversify our trade and grow the economy," said International Trade Secretary Liz Truss.

David Henig, director of the UK Trade Policy Project at the European Centre for International Political Economy, pointed out that a UK-Japan deal is forecast to deliver less to Britain's economy than the comparable forecast for the EU-Japan agreement, although the government said it would be "a deal that goes even further than the existing agreement".

Struggling in crucial talks with the EU after its departure from the bloc on Jan. 31, Britain started the negotiation of a free trade agreement with the United States last week amid the novel coronavirus pandemic.

The DIT said it will also set out its negotiating objectives for Australia and New Zealand shortly, with the aim of having 80 percent of total Britain's external trade with countries covered by free trade agreements by 2022.

Related

Go to Forum >>0 Comment(s)