A vision for the future
Japan and the United Kingdom are united by shared values of freedom, democracy and the rule of law. In a world characterised by weaponisation of interdependence and rising protectionism, both Keidanren and the CBI believe that trusted partnerships between like-minded countries are essential to delivering stability and prosperity.
The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) has served as a strong and successful foundation for this important relationship. CEPA continues to deliver tangible benefits to businesses, investors, and consumers across both countries. It has created a modern platform for digital and services trade, whilst also deepening supply chain integration and boosting investment in advanced manufacturing.
Building on this success, both countries are committed to exploring new avenues for growth under the UK-Japan Industrial Strategy Partnership. This partnership will serve as the framework for how both economies can translate ambition into action, from cooperation on critical and emerging technologies to clean energy, digital innovation and promoting mutual investment.
Together, Keidanren and the CBI will encourage our governments to leverage the full potential of this partnership, ensuring Japan-UK collaboration will exercise collective leadership in establishing new rules and norms towards shared prosperity.
Commitment to free, fair and open trade
Both Keidanren and the CBI remain steadfast in their support for free, fair and open trade. Global trade must be rooted in a rules-based international order. Both organisations stress the importance of advancing reform of the World Trade Organisation — including restoring a fully functional dispute settlement system — as the foundation for rebuilding trust in multilateralism and ensuring global commerce continues to drive job creation and sustainable growth. For this purpose, both organisations encourage the UK and Japan to be the first to declare their participation in the Free and Fair Trade and Investment Club#1, thereby expanding the network of free-trading nations.
Both organisations welcome the opportunity to strengthen and expand the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). We welcome the EU's intention to deepen cooperation with the CPTPP and are willing to work with business organisations in the EU to support this objective. By widening participation, we can reinforce global confidence in a cooperative trading system.
Both organisations share concerns on market-distorting practices, including industrial subsidies and forced technology transfers, and implore the governments of Japan and the UK to take the lead in promoting stronger international rules and norms to address these practices. Keidanren and the CBI also recognise the importance of considering non-price factors to counter excess supply caused by market distorting practices whilst ensuring measures are transparent and compliant with international rules and promote cooperation of countries with shared values.
1 Proposed by the B7 Joint Statement of the B7 Tokyo Summit in April 2023, which Keidanren and CBI participated. The Club will be formed by countries willing to meet certain high-level trade and investment standards within a specific period, and non-discrimination principle will be applied mutually among the participating countries.
Securing critical raw materials
Resilient access to critical raw materials underpins both economic security and economic growth. Japan and the UK already share a rich history of collaboration in this area, and thus Keidanren and the CBI emphasise the need for coordinated approaches at both a bilateral and multilateral level to ensure stability in global markets. It is important that both governments look to develop policies that reduce vulnerabilities in supply chains.
Innovative and strategic cooperation
Keidanren and the CBI strongly support deeper Japan-UK cooperation in key areas that will define the next generation of economic leadership. These areas include: supply chain resilience to strengthen economic security; collaboration on clean energy, energy saving technology, sustainable transportation, and decarbonisation;,cooperation on defence; ensuring cyber security; and supporting collaboration in research and innovation to drive inclusive growth and global competitiveness.
Japan and the UK's steadfast commitment to the Hiroshima Artificial Intelligence Process and their initiatives to expand the Partners' Community are strongly welcomed. Both economies must maximise the opportunities that artificial intelligence and other emerging technologies can create, whilst ensuring inclusivity, safety, security, and trustworthiness through international cooperation.
Keidanren-CBI partnership
Keidanren and the CBI reaffirm our intention to maintain a high level and strategic dialogue between the business communities of Japan and the United Kingdom, recognising the UK-Japan Industrial Strategy Partnership's activities.
As members of the B7, we will also continue to lead by example: advancing open markets, promoting sustainable growth, and shaping a future full of opportunities, optimism, and cooperation.