Belgium Now Better than Britain for Japanese Manufacturers
The new trade deal between the EU and Japan has shoved the UK to the bottom of the list for Japanese Car manufacturers. But our research has shown that this is not just limited to Car Manufacturers. We have found that many other Japanese companies are looking at moving their base of operations from the UK to countries within the European Union.
Nissan in a letter to workers said “continued Brexit uncertainty is not helping firms to plan for the future”Read more here
We have already seen many companies leave due to the uncertainty of Brexit, but this new EU trade deal seems to have put the final nail in the coffin for those hoping to keep the remaining Japanese companies here in the UK.
Sony to shift European headquarters from UK to Netherlands to avoid Brexit disruptionRead the full report here
Panasonic move EU headquarters out of UK because of BrexitRead more here
While most of the Brexit news is focused around the big car manufacturers like Nissan and Honda, there are many other Japanese companies migrating to the EU that haven’t yet attracted the attention of the main stream media.
These include:- Daiwa Securities and Sumitomo Mitsui Financial Group, who have both said that they plan to move their main EU bases out of London. Nomura Holdings has already set up new offices in Paris and Frankfurt and Japanese bank Norinchukin has said that it is planning on setting up a wholly-owned subsidiary in the Netherlands in response to Brexit.
Nissan has already said that it will not be making the new X-Trail here in the UK and we have heard that both Toyota and Honda are looking to close plants, preferring to ditch the uncertainty of Brexit and pursue other means to continue their trading relationship with the EU.
When the Japanese trade deal was first announced the Conservatives were quick to run to the press to claim it as a victory for their party. Scottish Tory MP’s even posted claims of how this deal was the first of many that would benefit Scotland . But that was short lived when members of the Independence movement took to social media to point out that it was in fact an EU trade deal and that Scotland would only benefit from it for one month, as we were being forced out of the EU on the 29th of March.New free trade agreement with Japan approved
So what is Japanese trade with the UK Worth?
The Japanese have invested over £46 billion in the UK.
More than 1,000 Japanese firms jointly employ around 160,000 people in the UK, in many business sectors, including:- financial services, manufacturing and pharmaceuticals.
The three Japanese car giants, Honda, Nissan and Toyota account for almost half of the UK’s car production.
In 2016 UK goods and service exports to Japan were over £12.5 billion, this covered many areas from power generating equipment, vehicles, financial services, food and drink to pharmaceuticals.
Whether you believe that the exit of so many Japanese companies is because of Brexit or because of the new EU trade deal it doesn’t negate the fact that they are leaving, and more importantly, that they are taking their jobs and their money with them.