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Old 14.12.2018, 15:11
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

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That's ridiculous!

And if this is true: << the agreement includes a clause requiring Japan to seek EU approval if they wish to enter a similar or better deal with the UK>> it also tells a lot about EU.

Petty and childish. "You can be my friend but if you want to play with the neighbour's kid next door, who doesn't want to be with me, you have to ask me first".

What the hell. And we thought only the US is going Trumpian?
It is not really as simple as this!
UK is still part of the EU and so is still part of this deal; after Brexit Japan will lose ca. 14% of the value of the Japan/EU deal.
Another twist is if after Brexit Japanese companies manufacturing in UK lose their tariff free access to the EU then maybe they are better to move back to Japan and get tariff free access via the Japan/EU deal?

More detail
There is an aspect of the EU-Japan trade agreement that could become important in the context of the UK's decision to leave the EU.
Although it is still unclear what form Brexit will eventually take, trade between the UK and the EU will be subject to more barriers than is currently the case. As trade agreements already concluded by the EU with other countries will then no longer apply to the UK, this means that the EU-Japan agreement will not apply to the UK either.
For Japan, this makes the agreement less attractive, as the market access to the UK will be closed.
The UK leaving the EU is estimated to reduce Japan's real GDP gains from the EU-Japan free trade agreement by 14%.23
On the other hand, the EU-Japan trade deal will help secure EU market access for Japanese firms now situated in the UK and using it as an export platform to serve the Single Market. The trade agreement can therefore be a backup for Japanese firms that now operate in the UK but will lose access to the Single Market after the UK leaves the EU.24
If these Japanese firms do not relocate to an EU27 country, they will have better market access to the EU out of Japan.
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