UK Secures First Trade Deal
The UK signed a trade deal with Japan this morning as it attempts to secure economic ties in a post-Brexit world. The deal, which is the country’s first since it voted to leave the European Union in 2016, was agreed on in September and formally signed by representatives of both countries today.
The agreement is quite like what was in place when the UK was part of the EU, but it is still significant for a few reasons. One is that it indicates that the UK’s trade relations with countries outside of Europe will likely remain the same. Japan had publicly come out against Brexit to support many business interests in the UK and the EU, so it is good news for London that their business relationship will remain largely unchanged.
One potential benefit of the agreement for the UK is that a clear pathway is now open for the country to join the Trans-Pacific Partnership. Japan said it will support the UK’s bid to join the trade agreement, so several other countries could have free trade agreements with London soon.
This progress with Japan comes after Prime Minister Boris Johnson resumed talks with the EU yesterday. Johnson is working to avoid tariffs and quotas when the UK leaves the European market on December 31.
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