Chairman Kobayashi’s Comments on Agreement in Principle on
Japan-UK Comprehensive Economic Partnership Agreement

September 11, 2020

It is welcome news that an agreement in principle has been reached on the Japan-UK Comprehensive Economic Partnership Agreement (EPA). Negotiations officially started this June, and I would like to express my utmost respect to the governments of Japan and the United Kingdom for working tirelessly to reach this agreement in just three months’ time. The fact that this was achieved during the unprecedented challenges of a global pandemic makes it all the more praiseworthy.

Japan’s annual trade with the UK is approximately 2.4 billion yen. Many Japanese enterprises operate in the UK, and a closely-linked supply chain connects our country with the UK and EU. As part of the agreement, tariffs for certain products will be eliminated earlier than scheduled under the Japan-EU EPA, and more advanced rules in areas such as e-commerce will take effect. I believe that this agreement will contribute to the further expansion of trade and investment between Japan and the UK, and promote economic prosperity for both.

Hopefully this will provide the impetus needed for our government to approve the Japan-UK EPA within the year. I think I can speak for businesspeople across Japan when I say that we are counting on our country’s elected officials to demonstrate the kind of leadership needed to maintain and promote free trade. We hope that for the benefit of both our business communities, the UK and EU will move swiftly to sign a tariff-free EPA.