UK - Japan trade deal agreed in principle but may impose tougher restrictions than those causing deadlock with the EU

The first major UK post-Brexit trade deal was agreed in principle with Japan on 11th September. If signed off by the UK and Japanese Parliaments, it could secure access for as many as 70 products with Geographical Indicators, including products such as Welsh lamb and beef - although these would still be subject to import quotas.

But confusingly, the deal also agrees to replicate the restrictions on subsidies as set out in the EU-Japan agreement, implying tougher restrictions on State Aid than those the UK Government is arguing for in the negotiations with the EU - an argument that has become a major obstacle during the negotiations as the EU demands that these rules should remain in line with their own. So it seems that the Japan deal inadvertently gives the EU what it wants while the UK Government is still arguing about the issue in its negotiations.

The UK Government claims that the State Aid element of the deal is “just a standard clause in any free trade agreement”, and the FUW will therefore continue to seek clarity on the matter.

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