Japan salutes UK-EU deal
The Japanese government has welcomed the long-awaited post-Brexit free-trade agreement between the UK and European Union before the end-of-2020 deadline for heading off negative impacts of a no-deal outcome.
“Issues, such as the introduction of tariffs between the EU and UK, have been averted that could have had a serious impact on the international economy,” says Toshimitsu Motegi, Japan’s Foreign Minister.
Motegi adds Japan will “closely monitor” the agreement’s implementation, and continue to share information and provide support to Japanese businesses based in the UK and mainland Europe.
The EU and UK reached the agreement in a move ensuring that trade in goods without tariffs and quotas will continue even after the UK’s transition period out of the bloc.
The deal, announced of December 24, comes as relief for Japanese carmakers that had threatened to quit the UK in the event of a no-deal and the imposition of tariffs of 10 per cent on exports to the EU.
The automotive industry has been particularly concerned about rule-of-origin requirements.
According to government documents, the deal ensures modern rules of origin and that electric vehicles made in the UK will be eligible for preferential tariff rates.
Nissan has the UK’s largest car plant. Its facility in Sunderland boasts a workforce of about 7,000. It manufactures the fully electric Leaf, as well as the Juke and Qashqai.
Toyota, which has been in the UK since 1993 with its plant in Burnaston pictured above, makes three variants of the Corolla sedan, including a hybrid version.
Despite the deal, there are concerns exporters will be subject to extra paperwork at the border and there could be costly delays.
In addition, the British automotive industry relies on a constant supply of parts from mainland Europe.
Mike Hawes, chief executive of the UK’s Society of Motor Manufacturers and Traders, says: “The new EU-UK trading agreement provides a platform for our future relationship.
“We await the details to ensure this deal works for all automotive goods and technologies, including specifics on rules of origin and future regulatory co-operation.
“A phase-in period is critical to help businesses on both sides adapt and efforts should now be sustained to ensure seamless implementation, with tariff-free trade fully accessible and effective for all from day one.”
