Japan pushes UK to end car tariffs
Japan is calling for an early end to vehicle and automotive parts tariffs after negotiations on a post-Brexit trade agreement with the UK got under way.
Japanese foreign minister Toshimitsu Motegi and UK trade minister Liz Truss formally began the trade talks during a video conference on June 9.
The two governments hope to complete a deal by the end of the year when the transition period for the UK’s exit from the European Union ends.
Hiroshi Kajiyama, pictured, Japan’s trade minister, says he wants the UK to remove automotive tariffs “as quickly as possible”.
“In the negotiations, we hope to urge [Britain] to bring forward the period for which tariffs will be removed mainly for auto and auto parts ... as well as adopt high-level rules on digital trade,” he adds.
Trade between the countries was worth about NZ$59.9 billion in 2019 and the latest talks will build on an existing Japan-European Union deal, with UK officials seeking benefits for its financial services and textile industries.
The Japan-European Union free trade agreement came into force in February 2019 with plans to scrap the 10 per cent tariff on Japanese vehicles in its eighth year and immediately remove those on auto parts.
Also on the UK's agenda is joining a free trade pact consisting of 11 Pacific nations, including New Zealand and Australia, and it sees the talks with Japan as a step towards achieving that goal.
The Japan Automobile Manufacturers Association (JAMA) and the UK’s Society of Motor Manufacturers and Traders (SMMT) issued a joint statement welcoming the start of the negotiations.
“Our two automotive industries have had a deep and mutually beneficial trade, technology and investment relationship for nearly 40 years, thanks to continuous support from both governments,” it says.
“In order to further enhance this long-term partnership, SMMT and JAMA believe that the conclusion of a new Japan-UK free trade agreement based on the terms of the Japan-EU EPA – and its immediate implementation after the end of the transition period – would greatly benefit economic prosperity both in the UK and Japan.”
