Scottish businesses set to benefit from the historic UK-Japan Comprehensive Economic Partnership Agreement
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Signed by International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu in Tokyo on Friday the deal could increase UK trade with Japan by £15.7 billion, giving a £1.5 billion boost to the economy and increasing UK workers’ wages by £800 million in the long run.
This will benefit over 500 businesses in Scotland that exported £503.4 million in goods to Japan last year and help even more local businesses sell their goods and services to the Japanese market.
Iconic Scottish products, including Scotch beef, native Shetland wool and Stornaway black pudding are to be protected in Japan for the first time under a new agreement on Geographical Indicators (GIs). While Scotch Whisky distillers will continue to benefit from tariff-free trade.
The food and drink industry, which employed 46,000 people in Scotland in 2018, will also benefit from a reduction in tariffs on beef, pork and salmon.
UK Government Minister for Scotland, David Duguid said: “The signing of the UK’s new trade deal with Japan is much-anticipated and very welcome news, offering a real boost to Scottish businesses.
“Last year, Scottish businesses exported goods worth more than £500 million to Japan, with 574 businesses exporting there for the first time.
“Scotland’s world-famous products, including Scottish salmon, Scotch beef and lamb - and of course, Scotch Whisky - are set to receive a significant export boost.
“This deal is further evidence of how we can unlock our full potential outside the EU, which could benefit all parts of the United Kingdom.”
UK exports to Japan have been growing by an average of 8.2 per cent year-on-year over the previous five years.
With this free trade deal in place, potential benefits include better jobs, higher wages, more choice and lower prices for all parts of the UK.
This agreement also makes it easier for British and Japanese professionals to work in each other's countries, with Japan making it easier to obtain travel visas and work permits.
The agreement also includes a strong commitment from Japan to support the UK joining the Trans-Pacific Partnership (TPP), one of the world’s biggest free trade areas, covering 13 per cent of the global economy in 2018 and more than £110 billion in trade in 2019.
