(FT paywall) No-deal Brexit risks rise as UK-Japan trade talks stall
What to expect with most non-EU countries
(except tiny developing countries the UK is reportedly bullying into trade deals)
https://www.ft.com/content/5ce60af2-2b90-11e9-a5ab-ff8ef2b976c7
Britain and Japan have made little progress on a new trade deal in the past 18 months, according to officials involved in the talks,
with tariffs set to revert to World Trade Organization levels at the end of March unless the UK ratifies a Brexit deal.
Japan has agreed to extend existing trade terms for the duration of Britain’s planned transition period with the EU
but this will not apply if the UK fails to strike a deal with Brussels.
It is now too late for the Japanese Diet to ratify any agreement before Brexit is scheduled to take place on March 29.
There is also a wide gap in expectations about a trade accord, 😂🤦🏻♀️
which would apply either in the case of no-deal Brexit
or at the end of Britain’s planned transition period, which is due to end in December 2020.
Tokyo is confident that it can secure better terms from the UK than it did in negotiations with the much larger EU
and is not willing to duplicate the existing treaty precisely in either a bilateral deal or in talks for the UK to join the Trans-Pacific Partnership group.
“The new agreement is not just a copy-and-paste of the existing treaty,” < the recent EU-Japan FTA >
said one Japanese official briefed on the talks.
“The tariffs, rules and quotas need to be negotiated separately.”
The lack of progress on a future bilateral deal a goal set out by prime minister Theresa May on a visit to Japan in August 2017 —
highlights the UK’s broader struggle to roll over existing EU trade deals, let alone secure anything better.
This week, Britain’s Department for International Trade briefed 30 business groups on its failure to replicate “most” of the EU’s trade deals with other countries around the world.
Participants complained that they would be seriously affected by the failure to conclude agreements with partners as significant as Canada, Turkey and Japan.
.....
But in preliminary talks, Tokyo’s veteran trade negotiators have been under instructions to extract every advantage possible.
Progress has been particularly slow since many of their UK counterparts have been diverted to work on preparations for a no-deal Brexit.
.....
But if there is no transition period with Brussels the effects of the EU-Japan deal on Britain will expire too.
As a precautionary step,
Japan’s customs agency has issued guidance to companies that different tariffs will apply on March 30 depending on whether the UK ratifies a Brexit deal or not.^