But critics have said it will boost UK GDP by only 0.07%, a fraction of the trade that could be lost with the EU. The two countries had reached a broad agreement in September, and the deal is expected to boost trade between the UK and Japan by about £15bn. `The deal, which was negotiated over the summer, will take effect from 1 January 2021.
But some experts said it was a missed opportunity between the UK and its 11th biggest trading partner.
Dr Minako Morita-Jaeger, international trade policy consultant and fellow of the UK Trade Policy Observatory at the University of Sussex, said: “Given that Japanese FDI (Foreign Direct Investment) has been playing an important role in the UK economy and retaining its existing investment in post-Brexit is crucial, the UK government should have shown a strong commitment to Japanese investment by including a comprehensive investment chapter encompassing investment protection and dispute settlement,” said. She added that Japan was the largest investor abroad in the world, accounting for 14% of the world total in 2018. The new deal is very similar to the existing EU-Japan deal, but has an extra chapter on digital trade.