Japan-Korea Sign New Free Trade Agreement to Take Effect Next Year: "Will Strengthen Relations"

Elizabeth Truss, UK Secretary of State for International Trade, and Toshimitsu Motegi, Japanese Foreign Minister, are greeting each other by bumping elbows after the signing ceremony held in Tokyo on the 23rd.
[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan and the United Kingdom signed a new Economic Partnership Agreement (EPA) on the 23rd, NHK reported. The agreement is expected to take effect on January 1st next year after parliamentary approval.

According to the report, Foreign Minister Motegi Toshimitsu and UK Secretary of State for International Trade Liz Truss held a signing ceremony in Tokyo, Japan, and signed the EPA. This agreement was prepared because, following Brexit (the UK's withdrawal from the EU), the economic partnership agreement between Japan and the EU could no longer be applied after the end of this year.

NHK explained that the agreement includes provisions almost identical to those in the agreement with the EU that took effect last year, such as gradually reducing tariffs on automobiles exported from Japan to the UK and abolishing them by 2026. According to the Japanese government, this agreement is expected to eliminate tariffs on 94% of UK exports to Japan and 99% of Japanese exports to the UK.

Foreign Minister Motegi stated, "The unusually rapid signing within four and a half months since the start of negotiations also expresses the intention of both Japan and the UK to strongly promote free trade going forward," and pledged to strengthen bilateral relations based on the agreement. Secretary Truss said the agreement would greatly benefit both economies and expressed her intention to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) based on this agreement.

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