The Society of Motor Manufacturers and Traders (SMMT) has issued a joint statement with the Japan Automobile Manufacturers Association (JAMA) hailing a potential trade agreement between the two countries.
George Gillespie, president of the SMMT, and Akio Toyoda, chairman of JAMA, said: “SMMT and JAMA welcome the start of these historic free-trade agreement between the British and Japanese governments.
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“Our two automotive industries have had a deep and mutually beneficial trade, technology and investment relationship for nearly forty years, thanks to continuous support from both governments.
“In order to further enhance this long-term partnership, SMMT and JAMA believe that the conclusion of a new Japan-UK FTA 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.”
In its strategic approach outline for the FTA, the government said: “More trade is essential if the UK is to overcome the unprecedented the economic challenge posed by coronavirus. It can give us security at home and opportunities abroad – opening new markets for business, bringing investment, better jobs, higher wages and lower prices just as we need them most.
“At a time when protectionist barriers are on the rise, all countries need to work together to ensure long-term prosperity and international trade is central to this cooperation.
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By GlobalDataThe government estimates that the removal of trade barriers between the two countries could reduce the total annual tariffs by around £33m per year.
“An FTA with Japan, the third largest economy in the world in 2018, represents significant opportunities throughout the economy, from agriculture to digital and to increase the resilience of our supply chains and the security of our whole economy as we diversify our trade. Japan is a developed economy with high standards. The UK and Japan are major investors in each other’s economies, ranking fifth and sixth respectively for inward foreign direct investment.”
