Japan warns of departure of companies from UK
The Prime Minister of Japan and the country's UK ambassador warned of the implications of Brexit on European economies on Monday, after the government published a 15-page long list of demands for a post-Brexit Britain.
The pressure from Japan comes as UK Prime Minister Theresa May defended Britain's trade position at the G20 summit, claiming that India, Mexico, South Korea, Singapore and Australia are keen to push on with trade deals for a new non-EU Britain.
The unprecedented list of demands from Japan includes the maintenance of trade and worker access without burdens, harmonised UK-EU regulations and unfettered investment.
The letter warns that "Japanese businesses with their European headquarters in the UK may decide to transfer their head-office function to Continental Europe if EU laws cease to be applicable in the UK after its withdrawal".
The demands were backed by Japanese Prime Minister Shinzō Abe, who told Theresa May that more clarity was needed in response to ongoing political uncertainty.
"Prime Minister Abe requested [May’s] cooperation to enhance predictability and to continue to secure Japanese companies’ businesses and value chains," a ministry of foreign affairs spokesperson said.
UK ambassador Koji Tsuroka pointed out the example of Japanese car manufacturers, and how they would be affected by a Britain that did not maintain free trade with the EU, hinting at the possibility of removing investment.
"If the way Brexit ends up does not provide companies with the prospect of making sufficient profits to continue operating in the UK then of course all options are open to them," he said.
During her first G20 summit in Hangzhou, May emphasised that five big economies had made efforts to initiate trade talks with Britain, following the warnings from Japan and US president Barack Obama.
India, Mexico, South Korea, Singapore and Australia all expressed an interest in making a deal with Britain after it leaves the EU, according to May, but many big names were left off the list.
"We are building up the necessary expertise to go after these trade deals and here in China, I will be seizing the opportunity to talk to leaders from countries like Australia who have already made clear that they want to strike a deal once we have left the EU," May said at a press conference.
The Prime Minister faces pressure from many world leaders at the summit, with many looking for answers as to what form the country will take in the aftermath of its exit from the bloc.
