After the post-Brexit, UK was able to enter into the first major trade deal with its World War 2 rival, Japan, this Friday soon after the negotiations with EU turned out to be unfruitful.
The agreement was arrived at between the two countries as an alternative to the EU. UK is also looking forward to entering into trade deals with other countries which include also South Korea and Canada respectively.
UK’s Secretary of International Trade in a statement recorded on this Friday said that the execution of a trade agreement between the two nations is a most welcome step irrespective of the challenging environment caused due to the Covid-19 Pandemic. He termed the agreement as the source of providing great benefits to many businesses within wherein exports to Japan will be subjected to 99% tariff-free trade which will open the doors for the UK to make its entry into the Asia-Pacific region. By entering bilateral trade with Japan, which is the third-largest economy of the world, UK is set to achieve greater results. It is expected that UK will be able to increase its annual commerce with Japan to the tune of 15 billion pounds which will enable the UK to boost its economy by injecting 1.5 billion pounds.
Critics are of the view that the UK-Japan trade deal is less different than the one which was secured by the UK from the EU through its former premier. They also lamented that the UK’s economy would likely suffer irreparable loss and injury if no trade deal is possible between the UK and EU. Such a situation will pave way for the imposition of various impediments and tariffs which would otherwise jeopardize the UK’s economy to a great extent. While economists believe that in the case of no-deal between the two trading giants, there is no doubt that the EU and UK will both suffer irrevocably however the consequences will be more hurtful for the UK.
The talks between the EU and UK have however not ended which are scheduled to take place again in Brussels on the coming Monday.