NI firms to benefit from post-Brexit Japan deal

The deal could increase UK trade with Japan by £15.7b, giving a £1.5b boost to the economy and increasing UK workers’ wages by £800m in the long run.

This could benefit the 120 businesses in Northern Ireland that exported £65.5m in goods to Japan last year and help even more local businesses sell their goods and services to the Japanese market.

Farmers and food producers could particularly benefit, with iconic Northern Ireland products, including Lough Neagh eels, protected in Japan for the first time under a new agreement on Geographical Indicators (GIs).

The food and drink industry, which employed 20,000 people in Northern Ireland in 2018, will also benefit from a reduction in tariffs on beef, pork and salmon. Products from Northern Ireland made up 41% of the UK’s meat exports to Japan in 2019.

Foyle Food Group is one business already experiencing success in Japan with their premium beef products.

The largest single beef processor in the UK and Ireland, Foyle’s beef is sourced from a closed supply chain of welfare-focused farmers. Based in Omagh, with other sites across the UK and Ireland, its cattle are exported across the globe.

Since 2011, the Department for International Trade has supported Foyle Food Group, providing introductions to contacts in key markets, leading to further success overseas.

Foyle Food Group CEO Terry Acheson, said:“Japan is an important export market for the Foyle Food Group and the recently signed UK-Japan agreement will further secure current contracts in place.

“This export market is key to Northern Ireland’s economy and our local farming community.

“We have been exporting to Japan from 2019 and continue to grow our presence in the market. We are very proud that our quality Northern Irish beef is being enjoyed by the Japanese consumer.”

The deal is the first agreement that the UK has secured that goes beyond the existing EU deal, with enhancements in areas such as digital and data, financial services, food and drink, and creative industries.

The government says it secures major wins that would be impossible as part of the EU and places the UK at the forefront of shaping new global standards on digital trade.

International Trade Secretary, Liz Truss said: “Today is a landmark moment for the UK. It shows what we can do as an independent trading nation, as we secure modern and bespoke provisions in areas like tech and services that are critical to the future of our country and the reshaping of our economy. Trade is a powerful way to deliver the things people really care about. This deal is about creating opportunity and prosperity for all parts of our United Kingdom and driving the economic growth we need to overcome the challenges of coronavirus.

“The agreement also has a much wider strategic significance. It opens a clear pathway to membership of the Trans-Pacific Partnership – which will open new opportunities for UK business and boost our economic security – and strengthens ties with a like-minded democracy, key ally and major investor in the UK.”

Secretary of State for Northern Ireland, the Rt Hon Brandon Lewis MBE MP, said:“The agreement signed today with Japan offers a boost to Northern Ireland businesses. Over 100 NI companies already trade with Japan, and this deal aims to increase that number to boost jobs and opportunities in some of the most important sectors to the Northern Ireland economy.”

“I am looking forward to working with local businesses to maximise the opportunities ahead.”

UK exports to Japan have been growing by an average of 8.2% year-on-year over the previous five years. With this free trade deal in place, potential benefits include jobs, higher wages, more choice and lower prices for all parts of the UK.

This agreement also makes it easier for British and Japanese professionals to work in each other’s countries, with Japan making it easier to obtain travel visas and work permits.

The agreement also includes a strong commitment from Japan to support the UK joining the Trans-Pacific Partnership (TPP), one of the world’s biggest free trade areas, covering 13% of the global economy in 2018 and more than £110 billion in trade in 2019.