Carolyn Fairbairn, Director General of the Confederation of British Industry, said: “The signing of the UK-Japan trade agreement is a step forward. It will be welcomed by businesses across the country. The government and businesses must now work together to make the most of the agreement. This is a great opportunity to secure new Japanese investment in a wider range of sectors and regions of the UK. For now, Japan-UK. Trade continues to benefit from preferential tariffs on the basis of the EPA that came into force between Japan and the EU. The UK left the EU at the beginning of the year, but remains under its rules until the end of the transition period on 31 December. In terms of trade relations, the UK`s main partner is the European Union, to which it exported 46% of its products in 2018. Germany alone accounts for about 10% of UK exports. In comparison, the United States accounts for 13% of the UK`s total exports, in order to continue to underline the importance of the EU to the United Kingdom. The main UK exports include machinery and mechanical equipment, vehicles and parts, precious or semi-precious stones, precious metals, minerals, pharmaceuticals and electrical equipment (these sectors together account for 57% of exports). The second reason is more specific to the company. In 2017, Ford committed to building new facilities in Michigan and renovating old ones.

A trade agreement that will promote North American and U.S. production will increase the value of these investments. “Road safety or environmental standards will not be reduced under a free trade agreement with the United States or with another country,” she said. Under the trade agreement, Japan will benefit from the rule of origin through other means. On the one hand, some of the automotive components, such as engines and air conditioning systems, must come from only 50% of the contents of the two countries in order to benefit from preferential tariffs. This rate is below the 55% threshold for the Japan-EU trade agreement. With the signing of the agreement in 1965, tariffs between the two countries were abolished. In return, the three major automakers (General Motors, Ford and Chrysler) and, later, Volvo, agreed that auto production in Canada would not fall below the 1964 level and that they would provide the same sales ratio in Canada. [6] [7] APTA`s two stated objectives were to reduce production costs in Canada through more efficient production of a narrower range of vehicles and components and to reduce vehicle prices for consumers.

[8] Since the exit referendum, Britain`s economic environment has become increasingly damaging. Although the global economic slowdown and the U.S.-U.S. trade war have significantly influenced all global economies, the uncertainties associated with Brexit (exit conditions, the risk of hard Brexit, tariffs on imports and exports, limiting immigration, disruption of the supply chain, etc.) of the British economy have added unnecessary weight.