Brexit: 'Six Weeks' For Trade Deal With UK: Japan Negotiator

Barrons ^ | 23 June 2020 | Jon Stone

[Cronos]

Japan has given Britain just six weeks to sign up to a post-Brexit trade deal or face disruption to its imports and exports.

UK negotiators also face the prospect of being being bounced into a deal on unfavorable terms, as countries like Japan seek to use the reopening of deals to gain further concessions against the UK.

"To avoid a gap in January, we must pass this in the autumn session of the Diet [the Japanese parliament]," Hiroshi Matsuura, Tokyo’s chief negotiator, told the Financial Times. "That means we must complete negotiations by the end of July." ...

The European Union has a trade deal with Japan but Britain will no longer benefit from it from the start of 2021 when the Brexit transition period ends.

Any deal is expected to be based on a broad EU-Japan trade agreement that came into effect last year, but London has signalled it hopes to win the reduction or elimination of additional Japanese tariffs.

[Cronos]

Interesting - Japan is playing hardball

[Vigilanteman]

I’m betting Boris asked Abe through a back channel to play hardball so this long overdue Brexit could get done. 28 years of my career were spent working for Japanese companies and I understand these “behind the scenes” games well.

[Cronos]

But how would it work in this case? The Japanese are paying hardball with the Brits.

[O6ret]

It’s time for POTUS to weigh in and support Boris and BREXIT with our common trading partners....if he hasn’t already.

[Gay State Conservative]

Ten bucks says that the balance of trade between Japan and Britain is strongly in Japan’s favor as it is.And yet they want more.

[Wuli]

Japan has no choice. It’s deal with the EU includes restrictions on how a deal between the U.K. and Japan can be shaped without contravening rules Japan agreed to with the EU.

EU protectionist rules on hundreds of items extend to trade deals Japan may make with others - Japan must restrict others in many ways that the EU rules restrict Japan.

[Vigilanteman]

Emphasis has shifted to bilateral relationships. Japan wants Brexit completed so it doesn’t complicate the picture.

[Cronos]

US says a UK trade deal 'unlikely' before November

The two countries, which exchange £230bn worth of trade each year, started a second round of talks on Monday, after opening formal negotiations last month.

America's top trade negotiator, Ambassador Lighthizer told Congress that the US is looking for a comprehensive deal - not a more limited agreement of the kind it has settled for in other instances.

"There are very, very fundamental issues that we have to come to grips with," Mr Lighthizer said.

"I don't want anyone to think this is going to be a rollover."

On issues such as agriculture "this administration is not going to compromise", he said.

The US is looking to getting a better deal from the Brits as well.

[Cronos]

you are correct — from 2019 numbers,

Imports to UK 14,163
Exports from UK 13,531
Total trade 27,694
Trade balance -632

The thing is - they can see that the UK is weak and getting weaker. Plus, with the UK leaving the EU, Japanese companies will move operations from the UK (which was their base into the EU market), so Japan wants to get other items to compensate