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UK-Japan Free Trade Agreement for UK fashion and textiles

The government has recently announced that it has, in principle, secured a Free Trade Agreement (FTA) with Japan. The FTA has to be signed and the final text has yet to be seen but in many ways the UK-Japan deal will be a replica of the EU-Japan deal. The FTA will see tariffs eliminated or reduced and will also see a new, more beneficial, rules of origin regime.

Japan is the UK fashion and textile industry’s third-largest export market after the EU and the USA. For many brands, especially those manufacturing in the UK, Japan is the number one export market and the first market to buy their products.

UKFT has a fantastic knowledge of Japan and will be running seminars on how to sell to this hugely important market over the coming months. The seminars will include further information on the new FTA.

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Examples of the new tariff arrangements in the FTA are below, full details will be published shortly.

new tariff arrangements in the FTA-UK-Japan

The UK-Japan Agreement makes it easier for UK clothing manufacturers to export to Japan. In particular, the FTA will allow clothing producers to undergo a single process in the UK and then export to Japan under tariff preference, as long as 50% of the inputs are sourced domestically. This is a positive change from the EU-Japan deal which required several processes to take place in order to confer origin.

The FTA also allows for a more streamlined process to register design right protection in Japan and customs provisions that aim to minimise costs and administrative burdens.

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