Japan’s ambassador to London says Japanese and other foreign companies will not remain on the UK market if their presence will not be profitable after the expiration of the British EU membership.
Japanese Ambassador Curuoka Kodzsi on Thursday met with British Prime Minister Theresa May in Downing Street with the leaders of the largest Japanese producer and financial corporations in the UK economy.
After the meeting, diplomatic journalists stated that if foreign companies resident in Britain are “no longer profitable,” then no private company can operate in the British economy.
Curuoka Kodzsi added: this is not just for Japanese companies.
According to the ambassador, “this is a big deal, and that’s what everyone has to keep in mind”.
This is not the first such Japanese warning to London.
The Japanese government sent a letter of intent to the British government after a referendum of British membership in the EU on June 2016, with a narrow majority in favor of withdrawals, saying that Japanese companies that have deployed their European center in Britain can move the continental EU- the Member States will be required to carry out these activities if they cease to apply in the United Kingdom after leaving the EU. In the call, the Japanese Government has “strongly requested” that trade in goods between the United Kingdom and the EU remains free from customs duties, and services and financial transactions continue to run smoothly.
Among the demands expressed in the Japanese Government’s letter, Japanese companies operating in the UK economy could also recruit qualified personnel from the European Union in the future.
At the London meeting with the British Prime Minister in London on Thursday, Japanese Ambassadors, including Nomura, Marubeni, Mitsui, Mitsubishi, Honda, Nissan, Toyota and Panasonic, were also present in the UK’s giant companies.
Half of the UK’s automotive manufacturing is given by Japanese companies.
The UK car industry advocacy organizations have already warned the government that if there is no trade agreement with the EU and bilateral trade is governed by the World Trade Organization (WTO) regulation, British car exports to the EU will be 10 percent – insurmountable – customs duty.
Japanese FDI inflows in the UK economy amounted to approximately £ 47 billion ($ 17 billion).
According to Downing Street, Prime Minister Theresa May confirmed at the meeting that the British government would like to maintain a “deep and special partnership” with the European Union once EU membership has come to an end.
He added that Britain’s exit from the EU also made it possible for Britain to conclude new “free trade agreements” worldwide.
The cornerstone of the British government’s Brexit strategy is that London wants to conclude a free trade agreement with the EU, which will ensure the further “frictionless” trade with the countries that remain in the EU with the widest possible relief from duty.
According to London, however, this free trade agreement should allow Britain to freely negotiate trade agreements with other countries in the world.