Brexit’s Impact on Japan’s Trade with Europe

In the context of globalization, the Japanese government emphasizes the importance of reinforcing the free trade system. Due to European Union’s (EU) reluctance, the free trade agreement (FTA) negotiations between Japan and the EU took 4 years to conclude. However, Brexit prompted the conclusion of Economic Partnership Agreement (EPA) with the EU as to maintain the economic interests of both sides after the British exit from the EU. The UK wants to maintain economic relations with Japan and to become a ‘Global Britain’ in the post-Brexit era. This article analyses both Japan–EU and Japan–UK FTAs. The core of the article looks at the impact of Brexit on Japan’s access to the European single market through a review of Japanese sectors and large corporations, particularly the automobile industry.