We use some essential cookies to make this website work. The UK – Japan Comprehensive Economic Partnership Agreement was agreed in principle on 11 September 2020. Tariffs on 2 tariff lines covering electrical control units often used in cars are also eliminated. Find out which provisions each chapter of the CEPA covers. The UK signed a free trade agreement (FTA) with Japan on 23 October 2020. At its heart, this deal is about creating opportunity and prosperity for all parts of our United Kingdom and driving the economic growth we need to overcome the challenges of coronavirus. The UK has also provided certainty that partners and dependent children of intra-corporate transferees can accompany them to the UK. It is the government’s ambition to secure free trade agreements with countries covering 80% of UK trade by 2022. Trade between the UK and Japan only accounts for 0.07% of UK GDP, in absolute terms that represents £15 billion to the UK economy. I am originally from the U.K. and have an in-depth understanding of business and cultural practices of both countries. The UK signed a free trade agreement (FTA) with Japan on 23 October 2020. An employee 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. Transit through any other country is possible provided your goods remain under customs surveillance and do not undergo operations other than: You can find the provisions on rules of origin in Chapter 3 and Annexes (3-A to 3-E) of the CEPA. This will help strengthen trade ties between the UK and 11 Pacific countries and set new standards for global trade. We also use cookies set by other sites to help us deliver content from their services. Access to products covered by tariff rate quotas (TRQs) differ in the CEPA compared to the EU-Japan EPA. Find out more about moving goods and using freight forwarders. In some cases, the tariff rates may be lower than the EU-Japan EPA. Updated with details of how trading with Japan will change from 1 January 2021. Read guidance on the provisions for SMEs. The deal brings together 2 of the world’s most technologically advanced nations, placing the UK at the forefront of shaping new global standards on digital trade. However, the deal includes new clauses that, says campaigners, prioritize the free flow of data between the UK and Japan - and on to other trade partners such as the US - … This summary also covers arrangements for access to products covered by TRQs in the EU-Japan EPA. Further guidance on the requirements for importer’s knowledge is available. For example, you can split a consignment in the EU when exporting goods to Japan. A British-shaped deal that goes beyond the existing EU agreement, securing bespoke benefits for British businesses and citizens. According to official UK data, Britain’s total trade with Japan in 2018 amounted to £29bn (£14bn of exports and £15bn of imports). For example, the MRA Protocol’s good manufacturing practice for medicinal products annex requires the UK and Japan to recognise each other’s inspection and audit systems. International Trade Secretary Liz Truss hailed the UK-Japan agreement as a historic moment. You can change your cookie settings at any time. This means that the CEPA retains guarantees on non-discriminatory access to the Japanese government procurement market. The UK-Japan Comprehensive Economic Partnership Agreement was signed by International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu in Tokyo this morning (Friday 23 October). Find out how additional GIs will be protected under the agreement. The CEPA includes annexes covering a range of sectors: The CEPA replicates the effect of the EU-Japan Mutual Recognition Agreement (MRA) for Conformity Assessment, through a new Protocol on Mutual Recognition (MRA Protocol). The UK-Japan deal – overview While Japan is estimated to account for just 2% of British trade, the deal is expected to enhance trade relations between the two countries and provides some security for British and Japanese businesses that their current trading conditions will continue. Patrick Atack in London Share . If you’re a UK business providing services in Japan, you’ll need to follow Japanese regulations, including on: Consider appointing an English-speaking lawyer in Japan to help you comply with specific regulations. To find out more about the arrangements, see Annex 2-A of the CEPA. The UK government will put forward new GIs for protection in Japan on behalf of UK producers, saving time and money for UK businesses. She said: "This is a historic moment for the UK and Japan as our first major post-Brexit trade deal. We use some essential cookies to make this website work. The UK has struck its first major post-Brexit trade pact after signing a deal with Japan that aims to boost trade between the countries by about £15bn. Key points of the Japan-UK trade deal: Secures an estimated £15.2 billion of trade with Japan, over time, accounting for 0.07% of the UK’s GDP (dependant on deal or no-deal) However, Department for Trade analysis shows that in 2018, the EU-UK trade was worth £659.5 billion, while trade with Japan was worth £29.1 billion The following UK GIs include ‘cross-border GIs’ that relate to the territory of both Northern Ireland and the Republic of Ireland. The estimated boost to trade between the UK and Japan is over £15 billion, with long term economic benefits that are crucial to ‘build back better’ from Covid-19, reshaping the UK economy so it is fit for the future. But it will increase trade with Japan by about £15.2 billion. One tariff line covering industrial ethanol has had duties eliminated. Nothing in the UK-Japan CEPA prevents the UK from continuing to uphold its high environmental, food safety and animal welfare standards. This signing marks a new closer alliance between the UK and Japan, which will see our two like-minded democracies work together as the UK takes up the G7 presidency, where we will champion free trade. To help us improve GOV.UK, we’d like to know more about your visit today. We’ll send you a link to a feedback form. The CEPA maintains the level of market access granted to financial services suppliers under the EU-Japan EPA. This scheme temporarily suspends the need to pay tariffs at the border. The CEPA arrangement uses Japan’s BP scheme. Find out more about how your data is protected under the CEPA. The importer must provide a guarantee to the customs authority. They will also publish information on the availability of quota for imports from the UK. Our trade with the rest of … Commitments on tariffs for the vast majority of products traded between the UK and Japan have been transitioned in CEPA without changes. Trade is a powerful way to deliver the things people really care about. Recommended. For the full CEPA text and other key documents, see the UK-Japan Comprehensive Economic Partnership Agreement collection page. Commitments made on government procurement between the UK and Japan have been transitioned in the CEPA without changes. For more information related to standards, regulations and conformity assessment, see Chapter 7 and the MRA Protocol of the CEPA. The CEPA replicates commitments for preferential guaranteed market access and fair treatment for services suppliers and investors from the EU-Japan EPA. UK businesses should consult the relevant CEPA Annexes (8-B-I and 8-B-II) for the level of guaranteed fair treatment and market access for their sector. The Government of Japan has information on applying for Japanese visas. Welcoming the news, Carolyn Fairbairn, the director general of the Confederation of British Industry, said: “The signing of the UK-Japan trade deal is a … Commitments related to standards, regulations and conformity assessment remain largely the same as under the EU-Japan agreement. These GIs are listed for protection in the CEPA: You can find the provisions on GIs in Chapter 14 and Annexes (14-A and 14-B) of the CEPA. A British-shaped deal that goes beyond the … You may prefer to use customs clearance services to help your business with customs procedures. The Government of Japan provides advice on setting up a business and investing in Japan. The UK definition of investor now focuses on investment in UK industry and jobs, rather than the amount of capital. Japanese importers can register an import under the BP scheme through Japan’s digitalised system for customs procedures. You can find the provisions on SPS in Chapter 6 of the CEPA. It will take only 2 minutes to fill in. Don’t include personal or financial information like your National Insurance number or credit card details. In the Japanese market, UK businesses now benefit from: You can find all additional procurement coverage that goes further than the GPA schedules in Annex 10 of the CEPA. The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by International Trade Secretary Liz Truss and Japan Foreign Minister on a video call this morning (Friday 11 September). It shows what we can do as an independent trading nation." This means that at the point of import, Japanese importers only need to register the import under the BP scheme. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. The other relevant conditions must also be fulfilled. From tech and digital firms to fashion and luxury jewellery designers, London businesses could benefit significantly from the new UK-Japan trade deal. The CEPA contains measures aimed at supporting e-commerce between the UK and Japan. Britain and Japan have formally signed a trade agreement, marking the UK's first big post-Brexit deal. The UK–Japan Comprehensive Economic Partnership Agreement was agreed in principle by Truss and Motegi on a video call on 11 September 2020. The CEPA also 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. All content is available under the Open Government Licence v3.0, except where otherwise stated, UK–Japan Comprehensive Economic Partnership Agreement (CEPA), UK-Japan Comprehensive Economic Partnership Agreement, UK-Japan CEPA: tariff rate quota (TRQ) scheme technical notice, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases. Copied "Today is a landmark moment for Britain. One way of doing this is via a Banker’s Guarantee. Find out about moving goods under the Northern Ireland Protocol. The UK has officially signed an economic partnership agreement with Japan, marking an historic moment, as the UK’s first major trade deal as an independent trading nation and offering a glimpse of Global Britain’s potential. Updated statement of origin value threshold after Japan notified the UK of their waiver limit under Article 3.20.2 of the CEPA. The CEPA takes all the commitments on business mobility from the EU-Japan EPA and builds on them to provide additional opportunities for the UK and Japanese suppliers in the following areas. It was called a ‘historic moment’ by the British government as it was the first major trade deal for the UK as an independent nation after the announcement of the UK leaving the EU. The agreement also includes a strong commitment from Japan to support UK joining the Trans-Pacific Partnership (TPP), one of the world’s biggest free trade areas, covering 13% of the global economy and more than £110 billion of trade in 2019. Goods transited through third countries (including the EU) still benefit from preferential treatment. DIT estimated the 2019 EU-Japan trade deal would add somewhere between £2.1 billion and £3.0 billion to annual GDP after 15 years in 2017 prices, relative to a scenario where no deal was agreed. This Comprehensive Economic Partnership Agreement (CEPA) maintains the benefits of the EU-Japan Economic Partnership Agreement (EPA) with enhancements in areas of mutual interest. The UK and Japan have signed a free trade agreement (FTA) at a ceremony in Tokyo, hours before negotiations on a post-Brexit deal with the European Union are due to resume. This guidance provides information on the key terms of trade for UK businesses trading under the CEPA. The deal is not expected to improve on the 0.07 percent increase (some £1.5 billion over the long term) to British GDP from the agreement forecast by the government. The UK–Japan Comprehensive Economic Partnership Agreement (CEPA) is the first deal that the UK has struck as an independent trading nation. Japan has expanded the scope of their intra-corporate transferee category. Don’t include personal or financial information like your National Insurance number or credit card details. You can use online tools to check product-specific and country-specific information on tariffs and regulations: These tools are regularly updated to reflect any changes. This includes additional market access beyond Japan’s offer under the WTO Agreement on Government Procurement (GPA). A list of all goods covered by this arrangement can be found in Annex 3-C of the CEPA. You can change your cookie settings at any time. Although Japan makes up 2 percent of British trade, there is still lots to be thankful for in the agreement, experts said. Find your local trade office. The CEPA provides for the availability of visas for highly skilled professionals to work in Japan. For Japanese businesses trading with the UK, see information on exporting to the UK from Japan. All content is available under the Open Government Licence v3.0, except where otherwise stated, Product testing, standards and regulations, information on exporting to the UK from Japan, UK-Japan Comprehensive Economic Partnership Agreement collection page, look up tariffs, taxes and rules to trade with the UK, check duties and customs procedures for exporting goods, high level summary of agri-food market access, information (in Japanese language only) on the, Chapter 3 and Annexes (3-A to 3-E) of the, export/import guidance from the Japan Customs Agency, customs declarations for goods you send out of the UK or, customs clearance services to help your business with customs procedures, provisions on customs matters in Chapter 4 of the, Chapter 8 and Annexes (8-B-I and 8-B-II) of the, Chapter 8 and Annexes (8-B-III, 8-B-IV and 8-C) of the, provisions on digital in section F of Chapter 8 of the, Chapter 14 and Annexes (14-A and 14-B) of the, moving goods under the Northern Ireland Protocol, moving goods and using freight forwarders, UK-Japan CEPA: tariff rate quota (TRQ) scheme technical notice, UK-Japan Comprehensive Economic Partnership Agreement, UK-Japan CEPA: guidance on importer’s knowledge, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, entering Japan from the UK and below 200,000 yen in value, entering the UK from Japan and below £1,000 in value, any operation designed to preserve them in good condition, facilitation of shochu export in annex 2-D, good manufacturing practice for medicinal products (human) telecommunications and radio equipment, getting an authorisation or licence to provide a service, complying with local business regulations, Japanese nationality requirements which could prevent you from providing services in some sectors, prohibiting the application of customs duties to electronic transmissions and their contents, preventing the forced transfer of source code as a condition of market access, administering measures of general application affecting electronic commerce, such as the collection of information, in a reasonable, objective, and impartial manner, making an effort to avoid requirements (for example: a permit, licence, or approval) that need to be obtained prior to an economic activity being allowed to start where such activity is done via electronic means, protecting the legal effect, validity, and enforceability of an electronic contact, protecting the legal effect or validity of an electronic signature (or the authenticating data resulting from electronic authentication) against discrimination resulting solely from its electronic form, facilitating parties to a particular electronic transaction to mutually determine the appropriate electronic authentication methods or electronic signature for their transaction, facilitating the use of electronic authentication or an electronic signature in electronic transactions in compliance with the applicable legal requirements, encouraging the use of interoperable electronic authentication and electronic signatures, facilitating access to and use of services and applications of a consumer’s choice, connecting the devices of a consumer’s choice to the internet, accessing information on the network management practices of a consumer’s internet access service supplier, protecting consumers online by prohibiting fraudulent and deceptive commercial activities online, protecting online consumers’ personal information, protecting users from unsolicited commercial electronic messages (spam), encouraging the release of anonymised government datasets where appropriate with a view to enhancing and generating business opportunities, especially small and medium-sized enterprises (, cooperation on a broad range of e-commerce areas such as emerging technology (including artificial intelligence and the Internet of Things), banning unjustified impediments to the free flow of data between the UK and Japan whilst maintaining the highest data protection standards, upholding the UK’s robust data protection laws for individuals’ personal data when data is being transferred across borders, prohibiting unjustified data localisation requirements, preventing unnecessary requirements for encryption service providers to transfer details about their software, or other proprietary information, to state authorities as a condition of entering the commercial market, cross-border financial data flows to prohibit financial data localisation, the ability to supply new financial services and on regulatory transparency for authorisation processes, Irish whisky/Irish whiskey/Uisce Beatha Eireannach, access to regional level procurement opportunities, including procurement by Core Cities, access to contracts across a wide range of services including business services, insurance, telecoms, translation, photography, specialist design, food and beverage serving services, improved standards for the publication of procurement opportunities across all levels of government, a commitment to publish procurement notices for Japanese procurement covered by this agreement on the, a commitment that the ‘Keishin’ business evaluation procedure will not be used in a manner that discriminates against UK businesses. Under the CEPA, the UK will continue to have access to the same preferential tariff rate as in the EU-Japan EPA for 10 TRQs: See the high level summary of agri-food market access. The goods comprising the consignment must not have cleared customs in the EU. Today is a landmark moment for Britain. The requirements for claiming preference remain largely unchanged. You can find the provisions on digital in section F of Chapter 8 of the CEPA. For information on Japan’s customs procedures, see the export/import guidance from the Japan Customs Agency (website in English). This will allow additional UK products to be protected in Japan, subject to their domestic processes. A claim should be based on a statement of origin by the exporter that the product is originating, or the importer’s knowledge that the product is originating. [13] The UK–Japan Comprehensive Economic Partnership Agreement was signed by International Trade Secretary Liz Truss and Japan's Foreign Minister Motegi Toshimitsu in Tokyo 23 October 2020. Protection in Japan for more UK GIs will be possible under the CEPA. The working or processing you do in the UK must go beyond the minimal operations listed in the trade agreement. The UK-Japan Free Trade Agreement (FTA) is a domestic political gain for the UK Government. The FTA with the US, originally pitched as a key element of the post-Brexit agenda, appears some way off. The MRA Protocol provides measures to simplify the process of demonstrating compliance with safety and other regulatory standards. The deal with Japan means the United Kingdom has nailed down new agreements worth just 10% of its total trade in 2019, up from about 8% in January, according to … Find detailed information on how the new CEPA arrangement operates. You can find the provisions on financial services in Chapter 8 and Annex 8-A of the CEPA. I have created a network of business associates here in Japan that can navigate you through the process of successfully concluding a trade deal. The UK recently agreed a new deal with Japan, which will govern trade between the two countries from 2021, once the UK is not bound by the EU-Japan deal which came into … Its central estimate was a £2.6 billion increase after 15 years. If you wish to speak to someone directly, we have local trade offices based around the UK. To help us improve GOV.UK, we’d like to know more about your visit today. Find out about the changes to product-specific rules. 21 industrial goods have their duties eliminated in the CEPA tariff schedule. The UK and Japan have agreed that all eligible British products will be put through Japan’s GI approval process automatically. Don’t worry we won’t send you spam or share your email address with anyone. Don’t worry we won’t send you spam or share your email address with anyone. The measures within this section are aimed at: The government has published a summary of the CEPA provisions related to digital and data. We also use cookies set by other sites to help us deliver content from their services. You can find the provisions on trade in services in Chapter 8 and Annexes (8-B-I and 8-B-II) of the CEPA. For the provisions on animal welfare, see Chapter 18 Section B of the CEPA. The Japanese government provides information (in Japanese language only) on the EU-Japan EPA allocations and returns of TRQ quotas throughout the year. For information about import of goods by SMEs, see: information on exporting to the UK from Japan. You should consult your legal advisers if you wish to ensure you understand the legal implications of trading for your business. Global Business Daily: UK/Japan trade deal, Huawei growth defies 5G opposition. Geographical indications (GIs) protect the geographical names of food, drink and agricultural products. In Japan’s tariff schedule, 9 tariff lines covering certain leathers and hides will become duty free in 2026. You can find the provisions on business mobility in Chapter 8 and Annexes (8-B-III, 8-B-IV and 8-C) of the CEPA. UK-Japan Free Trade Deal Announced Freshfields Bruckhaus Deringer LLP European Union, Japan, United Kingdom September 23 2020 ... Subsidies and the UK-Japan Agreement. Added link to UK-Japan CEPA: guidance on importer’s knowledge. You can also contact your local chamber of commerce for advice. Goods do not require a statement of origin if they are: For exports of products that currently rely on EU inputs to access preferential tariffs, you can continue to use EU materials or processing in your exports to Japan. We’ll send you a link to a feedback form. You can also read information on customs declarations for goods you send out of the UK or EU. Freight forwarding may save you time and money if you’re exporting large volumes of goods or high value items by sea or air freight. It shows what we can do as an independent trading nation, as we secure modern and bespoke provisions in areas like tech and services that are critical to the future of our country and the reshaping of our economy. Important step towards joining the Comprehensive Trans-Pacific Partnership free trade area –which would result in closer ties with 11 Pacific countries. Within each office, you can contact an international trade advisor. The UK is still on a cliff-edge regarding the EU-UK future relationship and the possibility of a no-deal has risen in recent days. For malt, the UK will continue to have duty-free access to Japan’s market for malt via the existing Global TRQ. The digital trade and IP additions which the UK has introduced to the EU-Japan deal follow closely the priorities of the US, as expressed in high-profile trade deals where the US has been influential, chiefly the United States-Mexico-Canada Free Trade Agreement (USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). If you have queries about trade, contact the Department for International Trade (DIT) using the transition period enquiries form. It opens a clear pathway to membership of the Comprehensive Trans-Pacific Partnership – which will open new opportunities for British business and boost our economic security – and strengthens ties with a like-minded democracy, key ally and major investor in Britain. It also requires the UK and Japan to waive batch testing of products on import into their territories. The quota available to Japanese importers for British products will be the entirety of any unutilised EU quota in that year. It will take only 2 minutes to fill in. Both the UK and Japan have committed to ensuring that the process for applying for visas will be clear, transparent, and with an aim that they be processed in 90 days. The Department for Environment, Food and Rural Affairs (Defra) has contacted GI producers to confirm whether they would like their GI included in the agreement. The UK and Japan have agreed a free trade deal, as Britain races to secure easy access to overseas markets in preparation for leaving the Brexittransition period at the end of the year. I have lived in Japan for over 10 years with my Japanese wife. The agreement also has a much wider strategic significance. “It used to be said that an independent UK would not be able to strike major trade deals, or they would take years to conclude,” she proclaimed. The CEPA also provides additional enhancements to strengthen commitments on: The ability to supply financial services in the Japanese market will continue to be governed by Japan’s financial regulatory authorities. The deal is tailored to both economies and has secured that goes beyond existing EU deals, with big benefits for digital and data, financial services, food and drink, and creative industries. Commitments related to sanitary and phytosanitary standards (SPS) and animal welfare remain largely the same as under the EU Japan Agreement. On 11th September, the UK-Japan trade deal was announced to come into effect at the beginning of 2021. You can find the provisions on customs matters in Chapter 4 of the CEPA. Perhaps most significant for the global financial community are the digital and data provisions of the UK-Japan trade deal. Updated 'Small consignments and waivers' information with UK waiver limit. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. Trade secretary Liz Truss was triumphant after signing the UK’s first major post-Brexit trade deal with Japan last week.