“In the past, it was said that an independent Britain was not in a position to conclude major trade agreements or that it would take years before it was concluded,” Truss said in a joint press announcement with Japanese Foreign Minister Toshimitsu Motegi. The agreement is also of much broader strategic importance. It paves a clear path to membership of the Comprehensive Trans-Pacific Partnership – which will provide new opportunities for the UK economy and strengthen our economic security – and strengthen links with a like-minded democracy, an important ally and a key investor in the UK. The agreement, presented last month, means that almost all of its exports to Japan will be tariff-free, while UK tariffs on Japanese cars will be abolished by 2026. At the end of the day, trade is a powerful lever for economic growth. The CBI and its members will now work with the government to take full advantage of the opportunities and ensure that the benefits are felt in all parts of the UK. A major shortcoming is that the investment component of the EU-Japan EPA, which only covers investment liberalization, seems to remain intact. The UK government could have been firmly committed to Japanese investment for three reasons, including a full investment chapter, which includes investment protection and dispute resolution. First, the continuation of investment liberalization in investment relations between Japan and the United Kingdom is no longer controversial, given that the investment policy framework is already quite liberal in both Japan and the United Kingdom Second, the EU-27 and Japan have agreed to negotiate a bilateral investment agreement but have not yet reached the agreement. The United Kingdom could have played a leadership role in this regard. Thirdly, the Japanese economy is interested in protecting investment in the UK, as there is no ILO between Japan and the United Kingdom, while 92 ILOs are in force in the United Kingdom.  Japanese Foreign Minister Motegi Toshimitsu, who signed the free trade agreement, said he supported the UK`s inclusion in the Comprehensive Trans-Pacific Partnership (CPTPP).
According to the BRITISH government, the 11-nation free trade area covered 13% of the world economy in 2019 and more than $144 billion in trade. Japanese tariffs on British land products are maintained at the same level as in the agreement with the European Union.