Japan's Unprecedented Warning To UK Over Brexit

[cheesyboy]

Brexit thread is a car crash, it's been weeks since I bothered reading it.

Much more interesting to discuss individual issues in their own threads. As long as we don't get too many at once.

 

[yonderblue]

Fair enough a bit off-topic but I have my reasons, But what if US and Japan go through with their warnings and companies pull out the UK and then the EU punish the UK for their actions, It's a real possibility and consequences are not what leavers will expect and this should have been discussed during the EU referendum.

 

[b0redj0rd]

Just open the BREXIT thread? Or are we to make a thread for each piece of information that is released?

The services industry results aren't worth discussion?

 

[Avenged7Fold]

...this should have been discussed during the EU referendum.

It was and it was labelled fear mongering. Only time will tell. I'd imagine US companies not making huge changes depending on the industries and Japanese companies just heavily limited expansion or downsizing operation rather than a complete move. The HQs may be shuffled around and move but it is not like having a UK branch outside the EU is undesirable (obviously depending on the industry).

 

[FrenchTart]

Just open the BREXIT thread? Or are we to make a thread for each piece of information that is released?

The services industry results aren't worth discussion?

As above, this is under discussion within the mod team at the moment.

We'll have an announcement shortly so if you could please be patient until then it will be appreciated

 

[Orionaut]

Brexit thread is a car crash, it's been weeks since I bothered reading it.

Much more interesting to discuss individual issues in their own threads. As long as we don't get too many at once.

This,

Personally I would far rather discus specific issues as they arise rather than have some massive blanket thread where nothing specific ever gets debated to any satisfactory conclusion.

 

[awaybreaktoday]

Can everyone please stay on topic. Open another thread if you want to discuss issues around the brit exit thread.

Can you all stay on topic on how multiple British governments have promised all foreign investors that the UK would always remain a member of the the EU and provide access to the free market. This promise is now about to be broken.

 

[malachi]

....wow....all this fuss just about a closed Briexit thread

 

[Roar87]

Companies do move factories, and they get tax breaks/incentives from the recipient countries to do so.

It was on the news this morning that it wasn't just HQs but the car manufacturing plants as well, which employ thousands of people in areas with already higher than average unemployment.

These areas also voted for Brexit, so it would be a bit of a painful shock if it did happen and they got hit with mass unemployment....oh well, I'm sure the extra sovereignty they have got will see them through!

Did they vote for Brexit? Or are you just generalising because you think they work in a factory so must be working class, and it's working class people who mainly voted Leave?

 

[SPG]

Japan and the USA will still want to sell there crap here in the UK.

Our exports to these countries are generally luxury items and services. They need us more than we need them.

But then i should stop comparing the world economy to the ELITE trading

 

[scorza]

"If Japanese financial institutions are unable to maintain the single passport obtained in the UK, they would face difficulties in their business operations in the EU and might have to acquire corporate status within the EU anew and obtain the passport again, or to relocate their operations from the UK to existing establishments in the EU," said the report.

If.

 

[Freakbro]

Did they vote for Brexit? Or are you just generalising because you think they work in a factory so must be working class, and it's working class people who mainly voted Leave?

I'm repeating what the news said that the areas with these manufacturers were areas that voted for Brexit - I didn't think that was too difficult to understand from my post

 

[awaybreaktoday]

There are numerous Japanese businesses operating in Europe, which
have created 440,000 jobs. A considerable number of these firms are
concentrated in the UK. Nearly half of Japanese direct investment intended for
the EU in 2015 flowed to the UK, and the UK was one of the major destinations
for Japan’s investment stock within the EU as of the end of last year. While
benefiting from the single market of the EU, Japanese businesses have
contributed to the development of the European economy. Since Europe
including the UK is a major trading partner and investment destination for
other countries in Asia as well as of Japan, it is in the common interest of all
Asian countries as a whole that they continue to have access to the free market
of Europe, including the UK. 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. 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, and have established value-chains across
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.

 

[awaybreaktoday]

[Requests directed at the UK and the EU]
・ maintenance of the current tariff rates and customs clearance procedures;
・ introduction of provisions for cumulative rules of origin;
・ maintenance of the access to workers who are nationals of the UK or the EU;
・ maintenance of the freedom of establishment and the provision of financial services,
including the “single passport” system;
・ maintenance of the freedom of cross-border investment and the provision of services as
well as the free movement of capital, including that between associated companies;
・ maintenance of the current level of information protection and the free transfer of data;
・ unified protection of intellectual property rights;
・ maintenance of harmonisation of the regulations and standards between the UK and the
EU (including the maintenance of established frameworks of mutual recognition and
equivalence);
・ securing the UK’s function as a clearing centre for the euro and the location within the
UK of EU agencies such as the European Medicines Agency (EMA); and
・ maintenance of the UK’s access to the EU budget for research and development and
participation in the Japan-EU joint research project.
[Additional requests directed at the UK]
・ liberalisation of trade in goods without the burdens of customs duties and procedures;
・ maintenance of access to workers with the necessary skills;
・ maintenance of basic policies regarding the entry of foreign capital;
・ implementation of measures to promote investment;
・ maintenance of the current levels of information protection and the free transfer of data
in case the UK establishes its own legislation distinct from the EU’s;
・ ensuring the consistency of regulations and standards between the UK and the EU; and
・ ensuring that the EU’s research and development budget applies to research institutions
in the UK.
[Additional request directed at the EU]
・ provision of transitional arrangements for the single passporting system

 

[[TW]Fox]

Take an example Japanese car manufacturer.

Model A is made wholly within the UK, engine, chassis, fitment etc. and the whole factory and tooling for that car in the UK. They're not going to kill that. It takes decades to move a whole assembly line from one country to another, skill up a workforce and become profitable.

No it doesn't.

In 2008, when production of the B6 Audi A4 ended, Audi moved the entire production line, tooling and equipment to Spain, where they reassembled it and began production of the Seat Exeo, which was the same car. It doesn't take 'decades' at all.

If Honda wanted to move Civic production to Europe then once a suitable site is located and purchased and ready to move in, it'd take months not years to move the production.

 

[n111ck]

End of the day some services / companies are going to be sacrificed...

 

[MichaelAwkward]

No it doesn't.

In 2008, when production of the B6 Audi A4 ended, Audi moved the entire production line, tooling and equipment to Spain, where they reassembled it and began production of the Seat Exeo, which was the same car. It doesn't take 'decades' at all.

If Honda wanted to move Civic production to Europe then once a suitable site is located and purchased and ready to move in, it'd take months not years to move the production.

Slightly different though because the Martorell factory has been there for more than 2 decades now, with constant investment, and an already skilled workforce, setup to produce VAG vehicles. They probably physically moved very little apart from some tooling equipment etc.

They're moving the Audi Q3 assembly to Hungary from Martorell this year. Happens all the time.

Setting up a new factory entirely from scratch does take years. It took Nissan two years from signing the agreement with the UK Government for the first Bluebird to roll off the production line in Sunderland and that was just for the bodywork, paint and final assembly. Now they do everything there, including battery manufacturing for hybrids. These days it would take even longer for the construction and planning process alone and cost way more than it did then.

It would be the same if these Japanese manufacturers who already have factories in the EU decide to expand their operations there whilst downsizing their UK operations. I guess Nissan would be the most able to move now that it's fully part of Renault and they're both using the CFM platform. Toyota already have plants on the continent that they could expand. Honda have a handful of sites, but most are just support operations. Suzuki shares production facilities with Fiat, GM, Subaru etc. Mazda doesn't manufacture in the EU.

 

[arctine]

End of the day some services / companies are going to be sacrificed...

Sacrificed for what though?

 

[StriderX]

"Unprecedented"...

How very exaggerative and clickbait-y, they said this literally back in June, they all said exactly the same things months ago... literally nothing has changed and there is literally no new information here.

 

[Mercenary Keyboard Warrior]

Sacrificed for what though?

Less immigrants