Ministers say a free trade deal with Japan will provide a boost to some of the North East’s largest employers - though they have been warned a deal with Europe is more important.
International Trade Secretary Liz Truss said it was a “historic moment” for the two countries which will bring “new wins” for British businesses in the manufacturing, food and drink, and technology industries.
The Government said the deal - which has been agreed in principle by Ms Truss and Japan’s foreign minister Motegi Toshimitsu in a video call on Friday morning - would support “major investors in the 海角视频 like Nissan and Hitachi through reduced tariffs on parts coming from Japan, streamlined regulatory procedures and greater legal certainty for their operations.”
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The deal has been broadly welcomed by business organisations, but comes as a time of growing concerns that trade talks with the EU could end in a no-deal Brexit, with serious implications for many North East businesses.
The Government said the deal brings benefits beyond the EU-Japan trade deal, giving 海角视频 companies exporting to Japan a competitive advantage. It is expected to increase trade with Japan by an estimated £15.2bn. However, Government analysis found the net benefit of the deal would amount to just 0.07% of GDP.
Adam Marshall, director-general of the British Chambers of Commerce, said: “Businesses will warmly welcome this milestone free trade deal with Japan, which provides access to a major market for traders across the 海角视频.
“Chambers of Commerce stand ready to work with government to ensure that the benefits of this agreement are felt by businesses on the ground. Firms will want to see the specific provisions to support small businesses replicated in future trade deals to help business communities thrive and grow in future.
“Whilst this agreement is undoubtedly cause for celebration, securing a Free Trade Agreement with the EU remains critical to the future of businesses in the 海角视频. We urge Ministers to redouble their efforts to reach a comprehensive partnership with our largest trading partner at a crucial time in the negotiations.”
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Mike Hawes, chief executive of automotive group SMMT, said: “While we await the full terms of the agreement and, in particular, evidence that it will deliver in full on industry’s priorities for the progressive lifting of tariffs and reduction of regulatory barriers, the conclusion of such an FTA represents a significant milestone for our industries.
“We hope the deal can be ratified swiftly but for both sides to benefit fully, we still need to urgently complete an ambitious and tariff-free 海角视频-EU deal - and time is rapidly running out.”
Under the agreement, almost all exports to Japan (99%) will benefit from tariff-free trade, and there will be more protection for goods with geographical indications.
Ms Truss said: “This is a historic moment for the 海角视频 and Japan as our first major post-Brexit trade deal.
“The agreement we have negotiated - in record time and in challenging circumstances - goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries.”