China Direct

UK-Japan Virtual Trade Mission - Partnership with Japan - 02.03.21

WEBINAR DETAILS:

Tues 02 March 0900-1030 (UK time)

There has never been a better time to do business with Japan.

Since January the UK has a new Free Trade Agreement with the world’s third largest economy, opening even more opportunities for UK companies to forge partnerships and generate new business in this dynamic Asian country.

Marking this exciting new chapter in trading relations between the UK and Japan, the Department for International Trade is delighted to announce a series of business focused UK-Japan Trade Missions, to be run over the spring.

https://exporttojapan.co.uk/partnering-with-japan-spring-21-free-trade-agreement-series-launch-event/

These events have been specifically designed to inspire and support companies to export with Japan. In the coming days and weeks our event calendar will be updated with the events taking place as part of this exciting and ambitious series – in the meantime please do check regularly to see what is on offer!

Join the free launch event on March 2 with Minister for Exports, Graham Stuart, and leading figures from UK companies.

The 90-minute event will not only provide expert insight into the Japanese market and how the Free Trade Agreement can benefit your company, but participants will be able to develop their knowledge on how to succeed in the Japanese market with the Export Academy and Export to Japan.

Trade advisors in Tokyo and UK firms who have successfully launched and thrived in Japan will also be available to answer your questions on the issues that matter to you.

Now is the time to spring into Japan.

Speakers

UK Government:

• Graham Stuart MP, Minister for Exports
• Julia Longbottom CMG, HM Ambassador (Designate) to Japan
• Chris Heffer, Director, DIT Japan
• Marie-Claire Joyce, Head of DIT Japan Trade Team
• Shehzad Chaudhary, Deputy Director, DIT UK Regions – Midlands

Trade Bodies:

• David Bickle OBE, President, British Chamber of Commerce in Japan
• Steve Crane OBE, CEO, Export to Japan

Business:

• Chris Sheldrick, CEO of What3Words, one of the UK’s leading innovative tech companies
• Chris Horobin, CEO of Hotel Chocolat (Japan) one of the fastest growing UK brands in Japan today
• Poppy Gustafsson, CEO of Darktrace, the UK’s leading cyber security company in Japan
• Leslie Balfour-Lynn, Co-founder Balfour Winery at Hush Heath Estate

With grateful thanks to Export to Japan and DIT for sharing this information.

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UK & Japan agree historic free trade agreement

 

UK and Japan agree historic free trade agreement

The UK has secured a free trade agreement with Japan, which is the UK’s first major trade deal as an independent trading nation and will increase trade with Japan by an estimated £15.2 billion.

The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu

on a video call this morning (Friday 11 September).   

The deal is tailored to the UK economy and secures additional benefits beyond the EU-Japan trade deal, giving UK companies exporting to Japan a competitive advantage in a number of areas. It will help to create jobs and drive economic growth throughout the whole of the UK.   

The deal is also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This will give UK businesses a gateway to the Asia-Pacific region and help to increase the resilience and diversity of our supply chains. 

UK businesses will benefit from tariff-free trade on 99% of exports to Japan. Government analysis shows that a deal with Japan will deliver a £1.5 billion boost to the UK economy and increasing UK workers’ wages by £800 million in the long run.  

UK manufacturers, food and drink producers and the tech sector are all set to benefit from the measures in the UK-Japan deal, which include:  

• Cutting-edge digital & data provisions that go far beyond the EU-Japan deal. These will enable free flow of data whilst maintaining high standards of protection for personal data. We have also committed to uphold the principles of net neutrality, as well as introducing a ban on data localisation, which will prevent British businesses from having the extra cost of setting up servers in Japan. This will help UK fintech firms operating in Japan - like Revolut and Transferwise - to innovate and grow.  
• Improved market access for UK financial services – including greater transparency and streamlined application processes for UK firms seeking licences to operate in Japan. The deal creates an annual dialogue between Her Majesty's Treasury, UK financial regulators, and the Japanese FSA that will explore ways to further reduce regulatory friction - something that would be impossible were the UK still in the EU. Financial services are our biggest export to Japan, accounting for 28% of all UK exports.
•  Tariff free access for more UK goods – new and more liberal Rules of Origin will allow producers of coats, knitwear and biscuits to source inputs from around the world for their exports to Japan – making it easier and cheaper for them to sell to the Japanese market.
• New protection for more iconic UK goods – increasing geographical indications (GIs) from just seven under the terms of the EU-Japan deal to potentially over 70 under our new agreement, covering goods including English sparkling wine, Yorkshire Wensleydale and Welsh lamb. This would lead to improved recognition of key UK brands in the Japanese market.
• New protections for UK creative industries – British businesses can now be confident that their brands and innovations will be protected. We have gone beyond the EU on provisions that tackle online infringement of IP rights, such as film and music piracy.  
• Improved mobility for business people – securing more flexibility for Japanese and British companies to move talent into each country, covering a range of UK skilled workers to enter Japan, from computer services to construction. This includes commitments that go beyond the EU-Japan deal, for investors, spouses and dependents, and a wider range of intra-company transfers. Requirements for visas will be clear, transparent, and with an aim that they be processed in 90 days. A worker transferring from their UK HQ to the Tokyo office will be able to bring their spouse and dependents and stay for up to five years.  
• Supporting UK car and rail manufacturing – we will create new jobs at major investors in the UK like Nissan and Hitachi through reduced tariffs on parts coming from Japan, streamlined regulatory procedures and greater legal certainty for their operations.
• More generous market access for malt producers – Japan has guaranteed market access for UK malt exports under an existing quota which is more generous and easier to access than the EU quota. The UK is the second biggest exporter of malt to Japan, with UK producers exporting £37m there each year.  
•  Strong tariff reductions for UK pork and beef exports – We have negotiated a deal that sees tariffs fall on pork, beef, salmon and a range of other agricultural exports.  We will continue to benefit from access to the low tariffs for key food and drink products covered by quotas, such as Stilton cheese, tea extracts and bread mixes. This forms a pathway to further market access under CPTPP, which has been committed to by Japan as part of our agreement. 

The UK and Japan have a long-shared history as free trading nations and this deal marks an historic moment that will deepen the partnership between two democratic island nations.

International Trade Secretary Liz Truss said:    

“This is a historic moment for the UK and Japan as our first major post-Brexit trade deal. The agreement we have negotiated – in record time and in challenging circumstances – goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries.    

“From our automotive workers in Wales to our shoemakers in the North of England, this deal will help build back better as we create new opportunities for people throughout the whole of the UK and help level up our country.   

“Strategically, the deal is an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of modern free trade agreements with like-minded friends and allies.”    

Chair of the Federation of Small Businesses, Mike Cherry said: 

"As we look to the UK’s global trading future, trade deals we sign should be about businesses of all sizes, which is why we are delighted to see a UK-Japan trade deal today that includes a comprehensive chapter for SMEs. FSB has long campaigned for these chapters to be included in trade deals, to give UK small businesses the support and tools they need to reach new markets. 

“The UK-Japan trade deal therefore marks a major moment.  It provides access to a major global market for the UK’s small business exporters, with one in ten viewing Japan as a crucial market to tap into.  With over 130,000 small businesses already exporting to Japan, this should provide small businesses looking to grow, maintain or start exporting to Japan with the certainty they need for the future.”   

 Director General of the Confederation of British Industry, Carolyn Fairbairn said:  

“The signing of the UK-Japan trade deal is a breakthrough moment. It will be welcomed by businesses across the country. The government and business now need to work together to make the most from the deal. It’s a huge opportunity to secure new Japanese investment across a wider range of sectors and UK regions.    

“Business will help support the government in its efforts to secure more trade deals around the world and promote their benefits to communities. The Japan deal can be the first of many.”   

CEO of TechUK, Julian David said: 

“TechUK welcomes the conclusion of the UK-Japan Economic Partnership Agreement with its comprehensive digital trade chapter. Today’s agreement improves an already flourishing relationship between the UK and Japan tech sectors and creates significant opportunities for trade and investment for both our countries.  

“Since 2018, in partnership with JEITA, we have run a successful UK-Japan Tech Forum to enable our members to develop a closer relationship with Japan and we look forward to working with the Government and our partners in Japan to assist the tech sector in taking full opportunity of this agreement.” 

Jim Walker, Managing Director of Walkers Shortbread said:

“We welcome the news that a UK-Japan agreement has been agreed today. Japan remains one of Walkers' most important markets and sales have grown steadily there since first launching in Japan over 40 years ago.  
 

“This deal will help provide certainty and create more opportunities to continue building sales in the future in a market where our products already enjoy success.” 

Notes to editors   

• Negotiations with Japan started on 9 June 2020. Since then more than 100 negotiators have met via remote means or in person to negotiate this agreement.
• After the deal is formally signed, the UK and Japanese parliaments will have the opportunity to scrutinise the agreement and approve its content before it enters into force at the end of the year.  
•  It is the government’s ambition is to secure free trade agreements with countries covering 80% of UK trade by 2022.  
• A full Impact Assessment will be published before the agreement comes into effect.  

AstraZeneca signs $6 billion deal with Daiichi

CBI member, AstraZeneca, has announced that it has entered into a global development and commercialisation agreement with Japanese drugs manufacturer Daiichi Sankyo, for the promotion of Daiichi Sankyo’s DS-1062, an antibody drug currently undergoing clinical trials to test for efficacy in the treatment of small-cell lung cancer and triple negative breast cancer.

AstraZeneca and Daiichi Sankyo will jointly develop and commercialize DS-1062 worldwide, except in Japan, where Daiichi Sankyo will maintain exclusive rights. This agreement represents the second global antibody drug conjugate collaboration between the two companies, following a similar agreement in March 2019 between AstraZeneca and Daiichi Sankyo for the Japanese manufacturer’s ENHERTU drug, which is aimed at addressing multiple tumours with one treatment plan.

Pascal Soriot, CEO, AstraZeneca said: “[AstraZeneca] see significant potential in this antibody drug conjugate in lung as well as in breast and other cancers that commonly express TROP2 (a protein that forms on the surface of cancer cells) […] We are delighted to enter this new collaboration with Daiichi Sankyo and to build on the successful launch of ENHERTU to further expand our pipeline and leadership in oncology. We now have six potential blockbusters in oncology with more to come in our early and late pipelines.”  

AstraZeneca and Daiichi Sankyo will share equally development and commercialisation costs as well as profits from DS-1062 worldwide, except for Japan. Daiichi Sankyo is expected to book sales in U.S. and certain countries in Europe, while AstraZeneca is expected to book sales in other markets worldwide, including China, Australia, Canada and Russia.

UK & Japan FTA business Briefing

Dear CBI members and partners,

Please find a brief business summary of the current state of play of the ongoing UK and Japan Free Trade Agreement.

Download (7) 6 2020 - BUSINESS BRIEFING- UK-JAPAN FREE TRADE AGREEMENT NEGOTIATIONS

Kind regards

CHINA DIRECT would like to thank CBI BJ Policy Analyst Joe Cash [email protected] for preparing this briefing.

UK and Japan start trade negotiations

 

UK and Japan start trade negotiations

The UK and Japanese governments will today (Tuesday 9 June) start negotiating a UK-Japan Free Trade Agreement.  

The agreement will build on the existing EU-Japan deal. It will go further by securing additional benefits in areas such as digital trade, and providing support for the UK’s 5.9 million small businesses.

It will allow the UK and Japan to set new standards in areas of digital technology and e-commerce, helping to establish our position as a global technology superpower. 

Last year, UK trade with Japan was worth over £30 billion and 9,500 UK based businesses exported goods to the country, helping to employ 2.4 million people across the UK. A bespoke free trade agreement with Japan will help generate significant opportunities throughout the economy, creating jobs, boosting wages and diversifying choice for consumers. 

UK-Japan trade talks are also an important step towards our joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a key UK priority, which will help us diversify our trade and grow the economy.  

The UK and Japan are committed to an ambitious timeline to secure a deal that will enter into force by the end of 2020. Both countries are also dedicated to leading the global response to the economic challenges posed by coronavirus, making international trade easier and fairer and avoiding a retreat into protectionism.

The International Trade Secretary Liz Truss and the Japanese Minister for Foreign Affairs Motegi Toshimitsu are launching negotiations via video conference call.  

On the UK side, talks will be led at official level by Graham Zebedee, with all UK trade negotiations being overseen by Crawford Falconer, DIT’s Chief Trade Negotiation Adviser.  

Government analysis shows a UK Japan FTA will benefit every region and nation of the UK, with the greatest benefits in Scotland, London and the East Midlands. 

International Trade Secretary Liz Truss said:  

“Today marks a historic moment in the long-standing friendship between the UK and Japan. 

“As we kick start trade talks, we aim to strike a comprehensive free trade agreement that goes further than the deal previously agreed with the EU,  setting ambitious standards in areas such as digital trade and services. A trade deal with Japan will also advance the UK’s accession to the Comprehensive and Progressive Trans-Pacific Partnership, which will improve market access for UK businesses across the Asia-Pacific region.

“This deal will provide more opportunities for businesses and individuals across every region and nation of the UK and help boost our economies following the unprecedented economic challenges posed by coronavirus.”

Takaaki Hanaoka, Secretary General of the Japanese Chamber of Commerce & Industry in the UK said:  

“We, Japanese Chamber of Commerce＆ Industry in the UK welcome the movement of starting negotiation of Free Trade agreement by both UK and Japanese governments.

“The UK and Japan have common ground in that both have mature markets and societies.  Both can be partners in further developing economic activities through mutual trade and investment.  We urge strongly that a legally binding FTA between UK and Japan be agreed at the earliest opportunity.” 

Negotiations will be conducted remotely, via videoconference, across six working groups and will cover all 23 chapters and annexes of the future agreement. Around 100 negotiators will be involved on the UK side.    

A common-sense approach to negotiations will ensure that talks can progress during the COVID-19 pandemic, while public health and social distancing measures can continue to be respected.  

Josh Hardie, CBI Deputy Director-General, said: 

“The launch of the UK-Japan talks is a big step forward to creating an ambitious free trade agreement. 

“Japan offers huge opportunities for two-way trade and investment, one that will benefit every region and nation across the country. 

“Business is optimistic that a deal focused on supporting digital trade and industries of the future can be reached.”

The government is committed to conducting trade negotiations transparently, and we will provide further information on the progress of the talks as they go on.

ENDS   

Notes to Editors: 

• Japan is the UK’s 4^thlargest non-EU trading partner (11^th overall), with total trade reaching £31.4 billion in 2019.  Source - UK trade, quarterly trade in goods and services tables: October to December 2019
• The UK and Japan are major investors in each other’s economies, ranking fifth and sixth respectively for inward foreign direct investment. Source: ONS, Foreign direct investment (FDI) totals for inward and outward flows, positions and earnings: 2018 and JETRO, Japanese External Trade Organization, FDI stock (Based on International Investment Position, net) 
• Trade with Japan is integral to UK jobs and businesses. In 2018, around 9,500 VAT registered businesses exported £6bn worth of goods to Japan, employing 2.4 million people. Around 6,700 VAT registered business, employing 2.5 million people, imported £10bn worth of goods from Japan. Source:  HMRC UK trade in goods by business characteristics 2018
• Government analysis published last month shows that the UK economy could  benefit from a £1.5 billion boost in the long run. A UK-Japan trade deal could increase trade flows between both countries by £15.2 billion. 
• UK workers’ wages could increase by £800 million in the long run as a result of the agreement. 

UK publishes negotiating objectives for Free Trade Agreement with Japan

 

The CBI is happy to report that the Department for International Trade has published its negotiating objectives for a free trade agreement with Japan, with talks beginning shortly.

In November, the CBI went out to its membership to obtain inputs in support of the drafting of these guidelines. As an organisation, we are happy to report that the main ask of British business with interests in Japan, that any UK-Japan FTA builds on the EU-Japan Economic Partnership Agreement (EPA) that came into force last year, is the number one objective of the Department going forward.

According to the press statement released by the DIT, manufacturers of textiles and clothing, and professional and financial services providers are among the UK industries expected to be the biggest winners of lowering trade barriers with Japan, while the negotiations will also seek to bolster digital trade between our two countries.

International Trade Secretary, Liz Truss, MP., said: “Japan is one of our largest trading partners and a new trade deal will help to increase trade, boost investment and create more jobs following the economic challenges caused by coronavirus.  […] Both sides are committed to an ambitious timeline to secure a deal that goes even further than the existing agreement especially in digital and data. […] Negotiations with Japan are an important step in CPTPP accession, a key UK priority, which will help us diversify our trade and grow the economy”. 

Government economy analysis published in support of the negotiation objectives shows that the UK economy could benefit from a £1.5 billion boost, as a UK-Japan trade deal could increase trade flows between both countries by £15.2 billion. It is anticipated that UK exporters would benefit from zero or lower tariffs, creating potential savings worth around £33 million per year, while UK workers’ wages are expected to increase by £800 million in the long run as a result of the deal. 

The first round of talks will start shortly using video conferencing, with negotiations continuing to take place remotely until it is safe to travel.  

For more details of the precise objectives please contact the CBI's International Team via: [email protected]

Ocado partners with Japan’s biggest supermarket operator

CBI member, Ocado has announced that it has gone into business with Japan’s biggest supermarket operator, Aeon in a bid to launch and popularise online grocery shopping in the market.

Online grocery shopping has yet to take off in Japan, where consumers are accustomed to shopping daily for fresh ingredients. However, competition to be the first to harness the technology and logistics of online shopping is emerging between Japan’s two largest grocery stores: Aeon and Seiyu.

Aeon, which operates more than 21,000 stores in Japan, said that it would use Ocado’s software and expertise to build a new online business with a national network capable of handling $5.5 billion in sales by 2030, and just over $10 billion by 2035.

The deal between Ocado and Aeon will be the group’s first in Asia.

Aeon will use Ocado’s product picking software within parts of its existing store network, and offer click-and-collect services from selected sites. Aeon will also integrate Ocado’s robotic warehouses model into its own distribution network, adopting Ocado’s renowned customer fulfilment centres system.

Initially, Ocado-managed customer fulfilment centres will serve Japan’s Kanto region, with the first planned to go live in 2023, followed by other regions over the next two years.

Ocado shares leapt by as much as 15% in early Friday trading last week, as investors welcomed the partnership, whose technology deals have become more important that its original business of selling food online.

Despite only holding a 1.4% share of Britain’s grocery market, Ocado’s technology has powered the group to a £8.1 billion stock market valuation and partnerships with leading supermarket groups, including Kroger in the United States and Casino in France.

Mitsubishi to invest in UK green energy

CBI member, Mitsubishi Corporation has announced that it will acquire a 20% stake in the UK-based innovative energy service provider, OVO Group.

OVO Group is an energy supply company based in Bristol. The company hopes to revolutionise domestic energy supply, by utilising digital technologies, such as AI and IoT, to position itself as an energy ‘platformer’ and improve the management of the supply of energy from renewable sources.

Mitsubishi Corporation’s existing investment portfolio in renewable energy in Europe predominantly concerns offshore wind power generation. The company has plans to expand its presence in Europe and its role as a leading supporter of innovation within the sector.

Mitsubishi Corporation issued a press release highlighting how: “This investment in OVO is not only an opportunity for Mitsubishi Corporation to contribute to developments in the industry by establishing a new type of energy business that makes use of digital technology; it also stands to stimulate more growth in what is currently a very stable business portfolio by strengthening [Mitsubishi Corporation’s] operations in the service sector and downstream business.”

The specifics of the deal see Mitsubishi Corporation obtain 20% of shares in OVO and will dispatch a director to join OVO’s management team. The acquisition is part of Mitsubishi Corporation’s Midterm Corporate Strategy 2021, which aims to incorporate digital technologies and make them a core part of Mitsubishi’s business across all sectors.

 

CBI welcomes John Allan as New President

CBI WELCOMES JOHN ALLAN AS NEW PRESIDENT CBI members have endorsed the appointment of John Allan CBE as the President of the UK’s largest business organisation at its Annual General Meeting in London. Mr Allan, Chairman of Tesco and Chairman of Barratt Developments, succeeds Paul Drechsler CBE, Chairman of the Bibby Line Group and Chairman of the Board of Teach First, to become the 27th CBI President since 1965.   John Allan CBE, CBI President, said: “It is a great honour to be elected CBI President at this critical time for the UK’s economy and businesses. “As a country we face great challenges and I will try to ensure that the CBI’s rational, evidence-based solutions are presented clearly and forcefully to all concerned, and in particular to the Government. “Whether it is finding the best possible outcome to Brexit or focussing energy upon the long-term issues, like the Industrial Strategy, skills and infrastructure, we will campaign honestly and clearly for a future which is good for the British economy and good for the British people. “Paul has been an outstanding President helping to steer the business agenda through challenging waters. I look forward to carrying his work forward and to working closely with Carolyn and all the rest of the very talented CBI team.”   Carolyn Fairbairn, CBI Director-General, said: “It’s a great pleasure to welcome John to the CBI as our new President. His passion, and the breadth of his experience and knowledge – formed over decades at some of the largest employers in the country – will be of tremendous value to us at such an important juncture for British industry.”   Since 2015, Mr. Allan has been Chairman of Tesco, the largest private sector employer in the UK. He has also been Chairman of Barratt Developments since 2014. Previously, amongst other senior roles, he was non-executive director at Worldpay where he was formerly Chairman. He was Chairman of Dixons Retail and Chief Financial Officer and a Board Member of Deutsche Post DHL. He was also previously Chairman of Care UK Health & Social Care and a non-executive director of the Home Office Supervisory Board, and was Chairman of London First from 2014 to 2018, a business group representing leaders of firms in the capital. He has been a non-executive director at: Royal Mail, PHS Group, National Grid, Wolseley, Hamleys, 3i and Connell. In 2006, he was made a Commander of the Order of the British Empire (CBE) for services to freight transport.     19 June 2018   Notes to Editors:   The CBI President plays a leading role in the organisation’s advocacy work, meeting with ministers and senior civil servants, promoting British business internationally and chairing the CBI Board. The role of President is an unpaid post, and the President can stand for a total of three terms as set out in the CBI’s Royal Charter.   Across the UK, the CBI speaks on behalf of 190,000 businesses of all sizes and sectors. The CBI’s corporate members together employ nearly 7 million people, about one third of private sector-employees. With offices in the UK as well as representation in Brussels, Washington, Beijing and Delhi, the CBI communicates the British business voice around the world.   Media Contact: CBI Press Office is available 24 hours a day on 0207 395 8239, or email: [email protected]. Follow the CBI (@CBItweets) on Twitter.

 

GKN Unveils New Advanced Driveline Production Facility In Japan

 CBI Member GKN Driveline has unveiled plans to construct a new world-class manufacturing facility in Tokoname City, Japan. The new site will replace an older plant, representing a substantial technological upgrade of GKN Driveline’s capability in the region.

The announcement follows a significant number of new business wins for GKN Driveline’s All-Wheel Drive (AWD) and eDrive systems, with the company forecasting a significant uplift in revenue from the operation over the next four years. Construction of the new facility will break ground in September 2017 and is scheduled to be complete by the middle of 2018.

The new Tokoname City operation will be state-of-the-art and filled with GKN’s best practice manufacturing technology, able to deliver high quality, next-generation AWD systems and Rear Drive Modules (RDMs), featuring advanced technologies such as electronic disconnect capability and torque vectoring.

Please read more here.