New UK-Japan partnership
Japan and the UK have agreed to make a new economic partnership that rivals the Japan-EU free trade treaty.
British Prime Minister Theresa May welcomed the bilateral arrangement saying, “This gives businesses the stability and confidence to plan for the future, supports jobs and gives more choice and lower prices to consumers.”
According to the Japan Times, Japan's Prime Minister, Shinzo Abe, told May that the world did not want to see a disorderly Brexit and that he fully supported May’s withdrawal deal from the European Union.
Some of Japan’s leading companies in Britain have warned that a no-deal Brexit could be a disaster. However, Abe said it was scenario no one wanted to see.
“It is the strong will of Japan to further develop this strong partnership with the UK to invest more into the country and to enjoy further economic growth with the UK,” said Abe at a joint news conference with May.
“That is why we truly hope that a no-deal Brexit will be avoided and, in fact, that is the wish of the whole world.”
Japanese firms have spent more than £46 billion (NZ$85.5 billion) in the UK, reports the Japan Times. This spending was reportedly encouraged by successive administrations dating back to Margaret Thatcher promising them a business-friendly base from which to trade across Europe.
Abe has been one of the strongest international supporters of May’s Brexit deal since it was reached in November.
When they met at a meeting in Buenos Aires in December last year, Abe asked for May’s support to avoid a “no deal” and to ensure transparency and legal stability in the process, said the Japan Times.
“Japan is in total support of the draft withdrawal agreement worked out between the EU and Prime Minister May, which provides for transition to ensure legal stability for businesses that have invested into this country,” said Abe.
However, investors fear that if her deal is defeated as is expected, then the world’s fifth-largest economy could be plunged into a chaotic no-deal exit from the world’s biggest trading bloc, which would severely disrupt supply chains.
Car manufacturers Nissan, Toyota and Honda build roughly half of the UK's cars and have warned about the loss of any free and unfettered trade with the European Union after Brexit.
In a sign of such concerns, Honda said on Thursday it would shut its British operations for six days in April to help it counter any disruption.
“This is to facilitate production recovery activity following any delays at borders on parts,” Honda said in a statement to the Japan Times. “These contingency provisions have been put in place to best mitigate the risk of disruption to production operations at the Swindon factory.”
