BREXIT AND JAPAN PROACTIVE LOBBYING

There are numerous Japanese businesses operating in Europe, which have created 440,000 jobs. A considerable number of these firms are concentrated in the UK. Nearly half of Japanese direct investment intended for the EU in 2015 flowed to the UK, and the UK was one of the major destinations for Japan’s investment stock within the EU as of the end of last year.

Japanese Requests directed at the UK and the EU

• Maintenance of the current tariff rates and customs clearance procedures;
• Introduction of provisions for cumulative rules of origin;
• Maintenance of the access to workers who are nationals of the UK or the EU;
• Maintenance of the freedom of establishment and the provision of financial services, including the “single passport” system;
• Maintenance of the freedom of cross-border investment and the provision of services as well as the free movement of capital, including that between associated companies;
• Maintenance of the current level of information protection and the free transfer of data;
• Unified protection of intellectual property rights;
• Maintenance of harmonisation of the regulations and standards between the UK and the EU (including the maintenance of established frameworks of mutual recognition and equivalence);
• Securing the UK’s function as a clearing centre for the euro and the location within the UK of EU agencies such as the European Medicines Agency (EMA); and
• Maintenance of the UK’s access to the EU budget for research and development and participation in the Japan-EU joint research project.

Additional Japanese Requests directed at the UK

• Liberalisation of trade in goods without the burdens of customs duties and procedures;
• Maintenance of access to workers with the necessary skills;
• Maintenance of basic policies regarding the entry of foreign capital;
• Implementation of measures to promote investment;
• Maintenance of the current levels of information protection and the free transfer of data in case the UK establishes its own legislation distinct from the EU’s;
• Ensuring the consistency of regulations and standards between the UK and the EU; and
• Ensuring that the EU’s research and development budget applies to research institutions in the UK.

Additional Japenese Request directed at the EU

•  Provision of transitional arrangements for the single passporting system

If those demands are not met, Japanese businesses with their European headquarters in the UK may decide to transfer their head-office function to Continental Europe if EU laws cease to be applicable in the UK after its withdrawal.