UK, Japan sign free trade deal

Britain and Japan agreed a free trade deal on Friday, the first since the UK left the European Union in January.

The UK-Japan comprehensive economic partnership agreement was agreed in principle on a video call between Britain’s International Trade Secretary Liz Truss and Japan’s Foreign Minister Motegi Toshimitsu.

It will see tariff-free trade on 99% of UK exports to the country. Officials predicted a £1.5bn long-term boost to the UK economy, but did not specify a timeline.

UK manufacturers, financial services firms, food and drink firms and tech companies are among those set to benefit, the government said in a statement.

It added that the deal would help UK car and rail manufacturing – supporting major investors in the UK like Nissan and Hitachi through reduced tariffs on parts coming from Japan, streamlined regulatory procedures and greater legal certainty for their operations.

The deal comes as the European Commission threatens the UK with legal action over its plan to break the law and change the Brexit Withdrawal Agreement unilaterally.