So, today's excitement in UK trade policy circles is the launch of UK-Japan trade talks. Lots of talk of new opportunities.
But this is more about politics and repairing international relations than new trade opportunities. 1/n
But this is more about politics and repairing international relations than new trade opportunities. 1/n
Japan's response to the Brexit vote was bafflement at best, but I also heard the word 'betrayal' used. It is worth returning to September 2016 when the Japanese government issued this highly unusual 15 page statement. 2/ mofa.go.jp/files/00018546…
Japanese companies have been major investors in the UK, Nissan the most obvious example. A stable business environment and access to the EU were the primary reasons. For Japanese trade a UK-EU deal is the most important priority. 3/ uk.reuters.com/article/uk-bri…
There have also been concerns in Japan that Brexit would see the UK turn our backs on international trade policy rules. For that reason they've been keen to support our membership of the CPTPP. That would bind us to many rules. 4/ gov.uk/government/new…
A UK-Japan FTA is an opportunity to mend relations and act as a stepping stone for UK interest in CPTPP. In terms of immediate negotiating interests most are on the Japanese side - as my colleague @leemakiyama identified in this report - ifreetrade.org/pdfs/IFT-A_Bet… 5/
In particular Japan will probably want to roll back some of the agricultural tariff preferences given to the EU, eliminate UK car tariffs (phased in the EU-Japan deal), include investment arbitration (ISDS), and get strong UK commitments on short-term business visitors 6/
The benefit to the UK could come beyond the initial agreement, in strengthening our access to the Japanese services market through regulatory cooperation, as described here. As well as being a gateway to CPTPP. 7/ 
But if you're thinking that this looks like the UK having to pay to restore Japanese confidence in the hope of building a greater future relationship - in particular losing car manufacturing. Well those are the trade policy decisions we now have to take. 8/
Anyway, what we really need at this time is a trade policy expert with a doctorate in Japanese trade policy. And as it happens, we have one... perhaps the government could make an exception to having had enough of experts in her case? 9/ end
