Modelling shows an increase in trade and production that can lead to increased use of resources, particularly due to the expansion of the energy and agriculture sectors. Prior to aggregation, commercial data and corresponding data on 2018 UK rates are cross-referenced from the MacMaps database. The results of the International Trade Department`s call for contributions highlighted a number of priorities and concerns about free trade agreements and the environment. [Note 131] A preliminary assessment of the environmental impact of a future UK-Japan trade agreement has been carried out. We also assessed the impact on an alternative baseline in which the UK concludes trade with the EU under WTO-MFN rules. [Footnote 70] This should illustrate the potential impact of a free trade agreement between the UK and Japan in this context, but it does not reflect government policy. This is evaluated in the “Sensitivity and Limitation Analysis” section of this paper. The trade agreement between the United Kingdom and Japan is largely more symbolic for the United Kingdom than Japan. It is not certain that the new agreement will have a greater impact than the agreement with the EU, but there are some immediate benefits.
The conclusion of a trade agreement with the EU and the UNITED Kingdom will be positive for Japan if it is two major trade markets. The gap between the EU and the UK could deter the two groups of the population from consuming each other and encourage them to look elsewhere. The document sets out the UK`s vision for the agreement. It is the result of in-depth studies, including submissions and recommendations from the UKFT. Early on, the sector is explicitly mentioned in the document as a sector that expects a free trade agreement between the United Kingdom and Japan to be significantly beneficial. In the long term, it is generally considered to be 15 years from the time the agreement is implemented. The United Kingdom has already signed an exchange of letters on mutual recognition of compliance assessment, which maintains the operational aspects of the EU-Japan Mutual Recognition Agreement on Compliance Assessment after the implementation of the transition period by the United Kingdom. [Note 28] A free trade agreement with Japan, the world`s third largest economy in 2018, represents significant opportunities across the economy, from agriculture to digital, and to increase the resilience of our supply chains and the security of our economy throughout the diversification of our trade. Japan is a developed economy with high standards. The United Kingdom and Japan are the main investors in the economies of the other country and rank respectively at the fifth footnote [footnote 1] and the sixth footnote 2. In our free trade agreement in Japan, we will aim for a specific chapter on SMEs and SME-friendly provisions in all areas – from customs and trade facilities, from services and business mobility to telecommunications, digital trade and intellectual property – and we will remove trade barriers, 8,000 of which will benefit in all regions of the UK that already export goods to Japan. [Note 13] In January 2019, the United Kingdom and Japan agreed to negotiate a new bilateral agreement using the existing EU-Japan Economic Partnership Agreement (EPA) as the basis for ensuring that the new agreement is as ambitious, high-level and beneficial to both parties as the EPA and strengthened in areas of mutual interest.
In order to understand the priorities of business, stakeholders and the public for a future trade agreement with Japan, the Ministry of International Trade issued a call for contributions in which questions were asked about the challenges and opportunities that stakeholders present for trade with Japan.