Companies ask government to ease impact of Brexit

March 30, 2017

TOKYO- Japanese companies asked their government on Wednesday to work to minimize the impact of Britain’s exit from the European Union, or Brexit, on their businesses, as Britain formally notified the EU of its withdrawal the same day.

The Japanese industry ministry called a meeting with executives from companies operating in Britain, including Nissan Motor Co. and Hitachi Ltd.

During the meeting, many participants said they are concerns about uncertainties over what kind of trade and investment rules will be made between Britain and the EU.

The business people also voiced worries that Brexit could lead to possible rises in export and import costs, complicated customs and other procedures, and toughened regulations on financial service licenses.

Then they called on the government to play role in having Britain and the EU take Japanese firms’ demands into consideration.

“We will work to minimize Brexit’s negative effects (on Japanese businesses),” industry minister Hiroshige Seko said at the meeting.

More than 1,000 Japanese companies are currently active in Britain, which has the largest Japanese community in Europe with over 60,000 residents.

The Japanese government is now in talks with the EU to conclude an economic partnership agreement. After Brexit, Tokyo needs to have a bilateral trade pact with London.

Once a broad accord is struck with the EU, Japan will launch full-fledged studies on a possible pact with Britain, a government official said. Jiji Press