The United Kingdom is now making its mark in the trade arena as it makes official signing off a Free Trade Agreement with Japan, for the first time, after exiting from the European Union. But it runs the danger of its image being tarnished by a rather disgruntle EU bloc.
Political analysts believe this trade agreement to be a big call to all the nations that they are in for business especially those that fall as a part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
While this is going to place the UK in the center of similar free trade agreements, signing off Japan sets precedence. But the brewing tension between the UK and EU might derail the UK’s plans to be seen as a reliable trade partner.
According to the European Parliament, the UK has not kept its part of the Withdrawal Agreement. The skirmish has transformed over a brawl as UK announced its controversial Internal Market bill that seems to be disregarding the Withdrawal Agreement already agreed upon with British PM Boris Johnson.
EU wishes to make it clear that no trade agreement is possible with the UK under such circumstances.
Speaking to a well known European media outlet, David Henig, director of the UK Trade Policy Project, has pointed out, that retracting from its own commitment might hurt the UK’s public reputation as a faithful and fair trading partner.
With the deal signed with Japan, Britain can now fulfill its desire to move ahead with a digital pact. Indeed, digital trade is now promising, something the EU was earlier hesitant about. According to the new deal, Britain has now secured free data flow and curbed forced server location, reflecting a major goal that Japan pursues with all of its trading partners, something it could not manage to negotiate with the EU.
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