The United Kingdom and Japan are set to sign a bilateral free trade agreement by September, the Nikkei reported Wednesday, citing sources close to the talks. If the deal materializes, it would become Britain's first trade deal with a major country since Brexit.
According to the report, the agreement should be similar to the agreement between Japan and the EU, ensuring Japanese companies are not adversely affected after the Brexit transition period ends in 2021.
Tariffs on Japanese cars will be gradually reduced over the next two years, with the goal that by 2026 there will be none whatsoever. Under the agreement, imports of blue cheese from the UK will have the same tariffs as stipulated in the deal between Japan and the European Union.