Search CONTACT US Login

The UK & Japan

Trade and Investment

Japan is the 3rd largest economy in the world

and has long been an important trading partner for the UK.

It is the UK 14th largest trading partner

for goods and services and services, valued at £26.3 billion in the four quarters to end Q1 2023.

Japan large foreign direct investment in the UK, £92 billion in 2021

while outward FDI to Japan was valued at 3.1 billion.

Total UK export to Japan £13.9 billion.

Total UK import from Japan valued at £14.4 billion.

UK- Japan Comprehensive & Economic Partnership Agreement.

UK and Japan signed a free trade agreement the was signed in late 2020, aimed at creating new opportunities for trade, investment, and innovation in both countries.

The UK-Japan Comprehensive Economic Partnership Agreement (CEPA)

  • Eliminates or reduces tariffs on key exports.
  • Provides preferential access to the market for services sectors, such as financial services, legal services, education, and transport.
  • Simplifies customs procedures and rules of origin requirements to facilitate trade.
  • Protects geographical indications on icon products.
  • Enhances digital trade rules that enable free flow of data, ban data localisation, and protect personal data.
  • Secures the liberalisation of FDI between both countries.
  • Ensures high standards of environmental and labour protection, and promotes cooperation on climate change and sustainable development.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

In March 2023, the UK concluded negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and signed the Protocol of Accession July 2023.

Japan is a member of the CPTPP, along with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

CPTPP liberalises trade between countries with a combined population of half a billion people and includes some of the world’s most dynamic economies. With the UK joining CPTPP will account for around 15% of global GDP.

This comprehensive agreement will support UK businesses by making it easier for them to trade with CPTPP Parties.

Top Exports Trade UK – Japan

The top 5 in goods exported from the UK to Japan in the four quarters to the end of Q1 2023 were:

*of all UK goods exported to Japan

Mechanical power generators (intermediate)

£798.4 million or 11.8%*

Non-ferrous metals

£779.6 million or 11.6%*

Cars

£748.9 million or 11.1%*

Medicinal & pharmaceutical products

£709.3 million or 10.5%*

Miscellaneous electrical goods (capital)

£308.1 million or 4.6%*

The top 5 goods imported to the UK from Japan in the four quarters to the end of Q1 2023 were:

*of all UK goods imported from Japan

Cars

£1.4 billion or 15.4%*

Mechanical power generators (intermediate)

£1.1 billion or 12.0%*

Miscellaneous electrical goods (intermediate)

£630.1 million or 6.9%*

Non-ferrous metals

£533.1 million or 5.9%*

Road vehicles other than cars (intermediate)

£421.6 million or 4.6%*

The top 5 goods imported to the UK from Japan in the four quarters to the end of Q1 2023 were:

*of all UK goods imported from Japan

Cars

£1.4 billion or 15.4%*

Mechanical power generators (intermediate)

£1.1 billion or 12.0%*

Miscellaneous electrical goods (intermediate)

£630.1 million or 6.9%*

Non-ferrous metals

£533.1 million or 5.9%*

Road vehicles other than cars (intermediate)

£421.6 million or 4.6%*

(Source: ONS)

Download the latest Department for Business & Trade Japan Trade & Investment Factsheet

Get Involved

World Expo 2025 sponsorship available

Find out more
Back To Top