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U.K. Eyes August Breakthrough in Post-Brexit Japan Trade Talks

U.K. Eyes August Breakthrough in Post-Brexit Japan Trade Talks

The U.K. and Japan aim to reach an agreement in principle on a post-Brexit trade deal this month after “positive” discussions in London, British Trade Secretary Liz Truss said.

Following talks with Japanese Foreign Minister Toshimitsu Motegi, Truss said there is consensus on “major elements,” including agreements on data and financial services, “that go significantly beyond” Japan’s existing accord with the European Union -- which the U.K. is party to until the end of the year.

Boris Johnson has long argued that the ability to sign free-trade agreements tailored to Britain’s interests is a key benefit of Brexit, and the prime minister will gain significant political capital if he can show that the deal with the world’s third-largest economy improves -- rather than simply rolls over -- the terms of trade Britain had as an EU member.

“Negotiations have been positive and productive, and we have reached consensus on the major elements of a deal -- including ambitious provisions in areas like digital, data and financial services that go significantly beyond the EU-Japan deal,” Truss said in an emailed statement on Friday. “Our shared aim is to reach a formal agreement in principle by the end of August.”

U.K. Eyes August Breakthrough in Post-Brexit Japan Trade Talks

Truss gave no further details of the areas of agreement or disagreement in the talks.

The U.K. expects the deal to increase trade with Japan by around 15 billion pounds ($19.6 billion) a year in the long term. Trade between Britain and Japan was valued at more than 39 billion pounds last year, and Japan is the U.K.’s eleventh-largest export market.

Negotiations with the U.K. have been substantially agreed in most areas, Kyodo reported earlier on Friday, citing Japan’s Motegi.

©2020 Bloomberg L.P.