UK Enters into First Major Post-Brexit Deal with Japan
The UK has signed its first major post-Brexit trade pact by signing a deal with Japan. The deal aims to boost trade between these two countries by about £15bn. The deal would boost UK GDP by 0.07%, though, it is just a fraction of the trade that was lost with the European union (EU).
Significance of the deal
- This UK-Japan Comprehensive Economic Partnership Agreement has a great significance as now onward 99% of exports to Japan will be tariff-free.
- The deal secures new path for British businesses in manufacturing, food and drink, and tech industries.
- The deal would be beneficial for automobile sector as well shoe factories.
- It would create new opportunities for people throughout UK.
- Strategically, the deal is an important step towards joining the Trans-Pacific Partnership. This would further place Britain at the centre of a network of free trade agreements.
- Japanese investors in the UK including Nissan and Hitachi would be benefited from reduced tariffs on parts coming from Japan.
Withdrawal of the United Kingdom (UK) from the European Union (EU) is termed as Brexit. Brexit was done in 2016 following a UK-wide referendum. In the referendum, 52% voted in favour of leaving the EU while 48% voted to remain a member. The UK officially left the EU on 31 January 2020. Now, UK is subjected to EU law and remains part of the EU customs union and single market during the transition, but officially it is no longer part of the EU’s political bodies or institutions.
European Union (EU)
The EU is a political and economic union comprises of 27 member states that are located within Europe. The EU works to develop an integrated single market through a standardised system of laws. These laws apply to all member states. Policies of EU are aimed at ensuring the free movement of people, goods, services and capital within the internal market. It also enacts legislation in justice and home affairs. It maintains a common policy on trade, fisheries, agriculture including the regional development. There are no Passport restrictions to travel within the Schengen Area.
The Schengen area includes 26 countries namely- Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Greece, Germany, Italy, Hungary, Iceland, Latvia, Liechtenstein, Malta, Lithuania, Luxembourg, Netherlands, Poland, Norway, Portugal, Spain, Slovakia, Slovenia, Sweden, and Switzerland.
Category: International Current Affairs