Japan's Unprecedented Warning To UK Over Brexit

awaybreaktoday · 4 Sep 2016 at 18:15

UK Prime Minister Theresa May has come under pressure at the G20 summit over Britain's trade links with the US and other countries after it leaves the EU.

President Obama said the US would prioritise trade negotiations with the EU and Pacific nations over a UK deal.
Japan has warned of "drastic changes" after Brexit and said the potentially "harmful effects" must be minimised.

But an official Japanese government briefing has warned of the repercussions for the thousands of people employed by Japanese car, finance and hi-tech firms in the UK and has sought assurances over continued access to the single market, tariff levels and other trade privileges.

"It is of great importance that the UK and the EU maintain market integrity and remain attractive destinations for businesses where free trade, unfettered investment and smooth financial transactions are ensured," the document said.

"In light of the fact that a number of Japanese businesses, invited by the government in some cases, have invested actively to the UK, which was seen to be a gateway to Europe... we strongly request that the UK will consider this fact seriously and respond in a responsible manner to minimise any harmful effects on these businesses.

Tefal · 4 Sep 2016 at 18:18

Obama wont be overseeing anything though.

He'll have been out of office for 2 years before any trade deals start

awaybreaktoday · 4 Sep 2016 at 18:19

The manufacturers want tariff-free access to the EU's single market as a starting point, as well as the freedom to move workers between plants, he said.

"All the car manufacturers have very integrated pan-EU supply chains and any interruption to that will be sand in the engine," he said.

Tefal · 4 Sep 2016 at 18:20

Why not just oaste the link your copy pasting from rather than piecemeal quotes

uber soldat · 4 Sep 2016 at 18:22

It means that the Japs are posturing to try and look after their own interests. I very much doubt they would suddenly pull all investment out of the UK just because we are leaving the EU.

awaybreaktoday · 4 Sep 2016 at 18:22

Tefal said:
Obama wont be overseeing anything though.

He'll have been out of office for 2 years before any trade deals start

You are dreaming if you think a change in president will change this stance.

awaybreaktoday · 4 Sep 2016 at 18:23

Links:

Brexit: Japan warns firms may move European HQ out of Britain
http://www.bbc.co.uk/news/business-37270372

G20: Theresa May faces Brexit trade pressure
http://www.bbc.co.uk/news/uk-politics-37269916

G20 Summit this weekend.....

Tefal · 4 Sep 2016 at 18:24

awaybreaktoday said:
You are dreaming if you think a change in president will change this stance.

It would play well into trumps rhetoric

Tefal · 4 Sep 2016 at 18:24

Anyway cant this go in the "all **** brexit" thread?

Strife212 · 4 Sep 2016 at 18:25

The Trade deal between the EU and the US is absolutely dead in the water and is never going to happen anyway.

http://www.thelocal.de/20160829/vice-chancellor-ttip-has-failed-us-eu

So who cares that we aren't in it?

Tefal · 4 Sep 2016 at 18:25

uber soldat said:
It means that the Japs are posturing to try and look after their own interests. I very much doubt they would suddenly pull all investment out of the UK just because we are leaving the EU.

Its equally putting pressure on the EU.

Theyre making it clear it will affect thier "pan euro" chain, they know brexit is going to happen but theyre going ro want ro keep tarrifs for car parts/cars at zero, which is also what the likes of germany will want

They arent just pressuring britian but warning both sides

Zethor · 4 Sep 2016 at 18:27

uber soldat said:
It means that the Japs are posturing to try and look after their own interests. I very much doubt they would suddenly pull all investment out of the UK just because we are leaving the EU.

What exactly would be the point of staying considering most of its exports go to the Single Market?

Tefal · 4 Sep 2016 at 18:29

Zethor said:
What exactly would be the point of staying considering most of its exports go to the Single Market?

Hundreds of millions of lost investment?

Massive loss of production capavilites.

Not having any exports at all?

A low tarrif may be absorbable, not having a factory at all though is years of investment, training, recruitment, planning etc.

They cant just up and move the factories to mainland europe wothout years of investment.

Brizzles · 4 Sep 2016 at 18:29

Give it 5 years and the EU will be a crumbling, failed piece of history, so i wouldn't worry.

1 more sizeable country leaves and the whole house of cards will fall.

Your quote is just the usual economic 'bants' that happens at Summits

Zethor · 4 Sep 2016 at 18:29

Tefal said:
Its equally putting pressure on the EU.

Theyre making it clear it will affect thier "pan euro" chain, they know brexit is going to happen but theyre going ro want ro keep tarrifs for car parts/cars at zero, which is also what the likes of germany will want

They arent just pressuring britian but warning both sides

Warnings that they will move HQs to the EU are clearly directed at the UK. The EU countries would love to have them so for them it's something to hope for, not warnings.

awaybreaktoday · 4 Sep 2016 at 18:31

Tefal said:
It would play well into trumps rhetoric

So your saying the USA should stop talks on a trade agreement with the EU and the pacific to deal with a smaller trade agreement with the UK, lol

Tefal · 4 Sep 2016 at 18:33

awaybreaktoday said:
So your saying the USA should stop talks on a trade agreement with the EU and the pacific to deal with a smaller trade agreement with the UK, lol

No?

Where did i say that?

Also does the usa only have one negotiating team?

Can they not hire another few staff members to work out more than one trade deal?

Does that mean the EU is waiting behind Iran goven thats the USAs big negotiation area at the moment?

Zethor · 4 Sep 2016 at 18:33

Tefal said:
Hundreds of millions of lost investment?

Massive loss of production capavilites.

Not having any exports at all?

A low tarrif may be absorbable, not having a factory at all though is years of investment, training, recruitment, planning etc.

They cant just up and move the factories to mainland europe wothout years of investment.

If they are warning about it, all these things are accounted for. The message is clear: Japanese corporations require access to the Single Market and they will act on it if the UK loses it. Oh and the wording is interesting as it implies free movement of labour is considered important too:

A considerable number of Japanese businesses operating in Europe are
concentrated in the UK. We have been informed of a variety of requests that
these businesses have in relation to BREXIT including: maintenance of trade in goods with no burdens of customs duties and procedures; unfettered
investment; maintenance of an environment in which services and financial
transactions across Europe can be provided and carried out smoothly; access to workforces with the necessary skills; and harmonised regulations and standards between the UK and the EU.

Tefal · 4 Sep 2016 at 18:33

Zethor said:
Warnings that they will move HQs to the EU are clearly directed at the UK. The EU countries would love to have them so for them it's something to hope for, not warnings.

Hqs are not factories

awaybreaktoday · 4 Sep 2016 at 18:34

Tefal said:
Hundreds of millions of lost investment?

Massive loss of production capavilites.

Not having any exports at all?

A low tarrif may be absorbable, not having a factory at all though is years of investment, training, recruitment, planning etc.

They cant just up and move the factories to mainland europe wothout years of investment.

Its new investment that will be the major issue and the building of alll new models. Why have new models built in the UK when you could build them on a block with freemarket access.