UK signs first major post-Brexit trade deal

The UK has stuck its first major post-Brexit trade deal after signing an agreement in principle with Japan which aims to boost trade by about £15bn.

International Trade Secretary Liz Truss said it was an “historic moment” for the two countries.

She said it would bring “new wins” for British businesses in manufacturing, food and drink, and tech industries.

However, critics say such deals will not replace trade likely to be lost if the UK cannot agree a deal with the EU.

Friday’s deal still needs approval by Japan’s parliament. Trade representatives there forecast the agreement should get clearance by January.

Ms Truss said the UK-Japan Comprehensive Economic Partnership Agreement means 99% of exports to Japan will be tariff-free.

“The agreement we have negotiated – in record time and in challenging circumstances – goes far beyond the existing EU deal, as it secures new wins for British businesses in our great manufacturing, food and drink, and tech industries,” she said.

“From our automotive workers in Wales to our shoemakers in the North of England, this deal will help build back better as we create new opportunities for people throughout the whole of the UK and help level up our country.”

She added that, strategically, the deal was an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of free trade agreements.

Major Japanese investors in the UK such as Nissan and Hitachi would benefit from reduced tariffs on parts coming from Japan and streamlined regulatory procedures, the UK’s trade department statement said.

Prime Minister Boris Johnson has said Brexit gives Britain the freedom to strike trade deals with other countries around the world.