The deal could boost trade between Britain and Japan by more than £15 billion and ultimately boost economic growth that benefits all parts of the country, particularly Scotland, London and the East Midlands. The signing of this free trade agreement and its subsequent ratification will not only strengthen the UK economy, but will also help us build Covid-19 better. “This pact is based on the ECONOMIC PARTNERSHIP AGREEMENT (EPA) between the EU and Japan, which entered into force in February 2019 and is the EU`s largest bilateral trade agreement,” said Dr Totis Kotsonis, an international trade expert at Pinsent Masons, the law firm behind out-law. “In the past, it was said that an independent UK would not be able to make major trade deals or that it would take years for them to be concluded,” Truss said in a joint press release with Japanese Foreign Minister Toshimitsu Motegi. “The anti-subsidy commitments in the Uk-Japan free trade agreement are more robust than those that the UK government has previously said it would accept as part of a trade deal with the EU,” Kotsonis said. “In reality, it`s relative. Based on the EU`s more complex and detailed state aid regulatory framework, the anti-subsidy commitments set out in the UK-Japan Free Trade Agreement should not constitute a major obstacle to the ability of both sides to subsidis domestic industries. For example, prohibited subsidies are limited only to subsidies that could have a “significant” impact on trade or investment between the two countries and consist of either permanent state guarantees or subsidies for bankrupt companies without a credible restructuring plan. None of these bans are expected to be controversial from the point of view of the UK government`s traditional approach to subsidies. The UK-Japan Free Trade Agreement is an asset to the UK government in domestic policy.
The UK is still on the edge of the cliff when it comes to the future relationship between the EU and the UK and the possibility of a no-deal has increased in recent days. The free trade agreement with the United States, initially presented as a key part of the post-Brexit agenda, seems distant. This is partly due to the uncertainty of the US presidential election, but also to differences of opinion on key areas such as food safety standards for US agricultural products.  Under these conditions, the UK was subjected to political pressure to demonstrate its ability to conclude its first free trade agreement as an “independent” nation. Therefore, the trade agreement with Japan, the world`s third largest economy and the UK`s fourth largest non-EU export market, is considered a “historic free trade agreement” for the UK.  It is excellent to see that this agreement between the UK and Japan contains a full chapter for SMEs. . . .