The new agreement has been widely welcomed by Japanese companies, although doubts remain about a free trade agreement between the UK and the EU by the end of the transition period. Historically, many Japanese companies have developed in Europe using the UK as a base and, without such an agreement, European companies owned by Japan would be disrupted. Strong tariff reductions for UK pork and beef exports – we negotiated an agreement whereby tariffs on pork, beef, salmon and a number of other agricultural exports will be lowered. We will continue to benefit from access to low tariffs for food and beverages that are subject to quotas, such as Stilton cheese, tea extracts and bread mixes. This is a means of gaining additional market access under the CPTPP, which Japan has committed to as part of our agreement. New protection for more iconic British products – increased geographical indications (GIs) from only seven under the terms of the EU-Japan agreement to more than 70 potentially under our new agreement, which includes products such as English sparkling wine, Yorkshire Wensleydale and Welsh Lamb. The result would be greater recognition of the major British brands in the Japanese market. [11] Department of International Trade (2020). Uk-Japan Free Trade Agreement: UK`s Strategic Approach, May 2020, 28-29. www.gov.uk/government/publications/uks-approach-to-negotiating-a-free-trade-agreement-with-japan/uk-japan-free-trade-agreement-the-uks-strategic-approach In the run-up to the agreement, a number of concessions have been agreed on tariffs and rules of origin protecting Japanese investment in the UK automotive and rail industry. This responds to the strong demands of the Japanese government. With regard to tariffs, the United Kingdom has agreed to the immediate reduction of tariffs on certain inputs in the automotive and rail industry. [16] With regard to the rules of origin, the agreement increases the accumulation of EU inputs in Japanese products and lowers the threshold for automotive components from 55% (under the EU-Japan EPA) to 50%.

However, the diagonal trilateral accumulation with the EU is not resolved, as this would also require an agreement with the EU. It is highly unlikely that the EU will make such a concession that could give the UK a competitive advantage. The important point is that these rules cover only certain target areas and are far from exhaustive. If we look at the UK`s global trading future, the Dentrade agreements we sign should be for companies of all sizes, which is why we welcome the existence today of a trade agreement between the United Kingdom and Japan, which contains a full chapter for SMEs.