Strategic Realignment: Post-Brexit Economic Relations between the UK and Japan

Siying Chen

European Journal of Business, Economics & Management, 2025, vol. 1, issue 3, 88-95

Abstract: This paper examines the strategic realignment of UK-Japan economic relations in the post-Brexit era, focusing on the evolving geopolitical context, trade and investment trends, and the significance of the UK-Japan Comprehensive Economic Partnership Agreement (CEPA). Following Brexit in 2020, the "Global Britain" strategy has sought to expand trade relations beyond Europe, positioning Japan as a strategic anchor in the Indo-Pacific. Japan's role as a major economic power, its leadership in high-value manufacturing and global finance, and its stewardship of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) make it a natural partner for the UK. The paper outlines bilateral trade and investment patterns, the development of political and economic cooperation mechanisms-including the Reciprocal Access Agreement and the economic "2+2" dialogue in 2025, and their implications for security and market integration. A detailed analysis of CEPA highlights its negotiation background, key provisions, and departures from the EU-Japan Economic Partnership Agreement. While CEPA ensures trade continuity and introduces sector-specific enhancements, its symbolic significance may outweigh its immediate economic impact, given the structural constraints and continued dependence on EU market access.

Keywords: UK-Japan relations; CEPA; CPTPP; Brexit (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:dba:ejbema:v:1:y:2025:i:3:p:88-95

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