The UK is close to sealing a “continuity” trade deal with Japan that will mirror that of the EU pact that Britain will no longer be part of next January. But in order to strike an agreement in time for it to be ratified by the Japanese parliament, the international trade secretary, Liz Truss, has had to drop her ambitions for preferential treatment for British food exports. And while she has not got the concessions she wanted on agriculture, often the most contentious subject in trade talks, it is understood the deal will go further than that of the EU’s in relation to data and digital services. The deal is also expected to involve zero tariffs on Japanese cars imported to the UK in line with the EU deal, which removed the 10% levy on automobiles and parts applying to third countries. A Department for International Trade spokesperson said: “Both sides are committed to an ambitious timeline to secure a deal that will enter into force by the end of 2020 if at all possible. Our priority is to maintain and enhance the trading relationship between our two countries.” Japan’s foreign minister, Toshimitsu Motegi, and Truss agreed last month to strike a swift deal on an economic partnership to secure continuous trade once Brexit is implemented on 1 January. Hiroshi Matsuura, Tokyo’s chief negotiator, warned in June that “to avoid a gap in January … we must complete negotiations by the end of July” in order for the ratification process in Japan’s parliament. It is understood that both sides expect to sign the deal by September. While Britain and Japan agreed to use the EU deal as the basis of the agreement, the UK also wanted to get a “reduction of elimination” of tariffs on goods and agriculture, particularly British beef exports, and market access for UK services. But it was made clear in the last few weeks that there was insufficient time to go into line-by-line tariff negotiations on agriculture, which was one of the most most difficult areas in the EU-Japan talks that led to a deal last year. “It is our highest priority to achieve an agreement within the timeframe … We need to adjust ambitions to a realistic level,” Matsuura told Reuters earlier this month. He added that digital trade would be an area where both countries could agree goals that went beyond the EU deal.
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