Cepa Agreement With Japan
The rules on e-commerce are another important issue. The e-commerce rules in the UK-Japan Free Trade Agreement can be seen as a step towards the CPTPP – by introducing key new rules like the free flow of data and the ban on imposing data localisation requirements – but it is not a broad chapter of e-commerce in its own right like that of the CPTPP. In addition, there is a legal and conceptual gap between the EU`s approach to digital trade policy, which places value on the protection of data protection and data security, and the Asia-Pacific approach, which is more focused on the liberalisation of data flows. Whether the UK would move from EU regulatory governance to Asia-Pacific-style regulatory governance would be a problem. Like investment, the UK needs a substantial political debate on its digital trade policy after Brexit and the implementation of digital rules through free trade agreements. Launched in September 2020, the National Data Strategy appears to be compatible with the Asia-Pacific approach to data governance. Under the new agreement, the time spent on the entry into force of tariff reductions will remain at the same pace as the EU-Japan EPA. For qualified products exported from Japan to the United Kingdom, certain additional duties have been eliminated, in accordance with the United Kingdom`s global customs system. Before leaving the EU`s internal market and customs union, the UK benefited from the EU`s extensive network of existing trade agreements with third countries. In many cases, the UK has simply tried to “shake up” transactions with third countries.
Although the EU-Japan Economic Partnership Agreement is one of the most recent (and comprehensive) agreements the EU has signed to date, both the UK and Japan have agreed that there are areas where the two countries could go further to reflect the bilateral trade relationship between the two countries. The main value of THE UK-Japan CEPA seems to be political, especially for the UK. In the beginning, the UK`s top priority after Brexit was immediately a free trade agreement with the US. However, the prospects for a swift deal have rapidly diminished due to uncertainty over the upcoming US presidential election and British public concerns about safety standards for US agricultural products and the NHS. That is why the UK has sought to demonstrate its ability to conclude a trade agreement as an “independent trading nation”. The free trade agreement with Japan, the world`s third largest economy and the UK`s 4th largest non-EU export market , fits perfectly into the UK`s domestic policy narrative. Japan is putting in place an agricultural protection system to protect against volatility in certain agricultural sectors in order to protect its domestic market. .