UK adn Japan Deepen Ties with New Economic and Defense Agreements
Table of Contents
- UK adn Japan Deepen Ties with New Economic and Defense Agreements
- Economic 2+2 Ministers’ Meeting: A Strategic Dialog
- Boosting Trade and Investment
- Defence and Security Cooperation
- Statements from Key Leaders
- Areas of Cooperation
- Industrial Strategy and Investment
- AI and offshore Wind Initiatives
- Trade and exports
- The Philippines: A Key Security Partner
- CBI’s Viewpoint
- UK and Japan Strengthen Ties: A Q&A on New Economic and defence Agreements
- Key Partnership Highlights
- Frequently Asked Questions
- What is the UK-Japan Economic 2+2 ministers’ Meeting?
- How will this partnership benefit UK businesses?
- What is the current state of trade between the UK and Japan?
- How are the UK and Japan collaborating on defence and security?
- what is the Global Combat Air Program (GCAP)?
- What are the key areas of cooperation between the UK and Japan?
- How does this partnership support the UK’s industrial strategy?
- What are the AI and offshore wind initiatives?
- What is the CBI’s view on this strengthened partnership?
- Rapid Summary Table
On March 6, 2025, the UK and Japan embarked on a new chapter of collaboration, marked by strategic discussions and agreements aimed at boosting economic growth and strengthening security cooperation. this initiative underscores the commitment to a robust trading system and resilient supply chains, vital for future prosperity.
Economic 2+2 Ministers’ Meeting: A Strategic Dialog
The cornerstone of this strengthened relationship is the Japan-UK Economic 2+2 Ministers’ Meeting (“Economic 2+2”). This dialogue, scheduled for March 7, signifies Japan’s recognition of the UK as a key partner in driving sustainable growth and security, a distinction shared only with the United States.
Key highlights of the partnership include:
- Unlocking the vast Japanese market for British businesses.
- Leveraging Japan’s existing £86 billion investment in the UK economy.
- Enhancing UK and Japanese defence industrial cooperation.
Boosting Trade and Investment
The new partnership aims to further enhance the existing £27 billion annual trade relationship between the UK and Japan. A business delegation accompanied the Foreign Secretary and Business Secretary to explore firsthand the opportunities for growth and advancement through UK-Japanese collaboration.
The discussions are expected to provide UK businesses with greater access to Japanese industry, capitalizing on Japan’s position as a manufacturing powerhouse, ranking third globally in terms of value added to the manufacturing industry.
Defence and Security Cooperation
Joint defence industrial projects between the UK and Japan are set to create jobs across the UK while bolstering defence capabilities and safeguarding British security interests in the Indo-Pacific region. Programs like the Global Combat Air program (GCAP), a joint effort between the UK, Japan, and Italy, exemplify this collaboration.
GCAP currently employs over 3,500 individuals in the UK, including engineers and programmers, who are building jets to protect British security interests and international trade, while together boosting job creation in the UK.
The Foreign Secretary’s visit to Japan’s Ministry of Defence and meetings with UK companies involved in GCAP will provide firsthand insights into the impact of these programs.
This collaboration aligns with the Prime Minister’s declaration to increase defence spending to 2.5% of GDP by April 2027,ensuring a secure habitat for businesses to thrive and contribute to economic growth.
Statements from Key Leaders
Foreign Secretary david Lammy emphasized the importance of the strengthened relationship:
This government is boosting growth to the UK by taking our relationships with major economies like Japan to new heights.It’s fantastic to arrive in Tokyo with a business delegation as we start a first of its kind economic dialogue.
David Lammy, Foreign Secretary
Lammy further noted the alignment of interests between the two nations:
The UK and Japan’s interests have never been more closely aligned.From our shared understanding of the indivisibility of Euro-Atlantic and Indo-Pacific security, to our desire to grow more together as we embrace the opportunities of new technologies like AI.
David Lammy, Foreign Secretary
He concluded by highlighting the benefits for UK businesses:
By working more closely with Japan, we will give UK firms more business, put money in people’s pockets and help deliver our Plan for Change.
David Lammy,Foreign Secretary
Business and Trade Secretary Jonathan Reynolds echoed this sentiment:
I’m looking forward to having the chance to discuss how the UK and Japan can strengthen the many economic ties that bind our 2 countries together as we deliver on our Plan for Change.
Jonathan Reynolds, Business and trade secretary
Reynolds also highlighted the historical significance of the trading relationship:
The UK and Japan share a proud, historic trading relationship that has only deepened in recent years, opening up new opportunities for businesses in both of our countries, and with our upcoming industrial strategy we will find even more common ground.
Jonathan Reynolds, Business and Trade Secretary
Areas of Cooperation
The Economic 2+2 will foster collaboration in various areas, including:
- Commitment to a fair-trading system.
- Joint research into future technologies.
- Mutual investment to support growth and innovation in the defence industry.
Industrial Strategy and Investment
The joint visit will advance work on a modern, aspiring industrial strategy. Japan is a meaningful investment partner, with 1,000 Japanese companies supporting 160,000 jobs in the UK.
The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), combined with the new economic partnership, will further strengthen this relationship.
AI and offshore Wind Initiatives
In Tokyo, the Foreign Secretary and Business and trade Secretary will host an AI business reception to promote the UK’s AI Opportunities Action Plan and explore new growth opportunities between British and Japanese AI sectors.
The Business and Trade Secretary will also announce plans for a new industrial strategy partnership and sign a UK-Japan Memorandum of Cooperation on Offshore wind, supporting the UK’s race to net zero.
Trade and exports
Reynolds will tour iconic UK exporters in Tokyo, including Warhammer, Brompton, and Burberry. UK exports to Japan totaled £14.7 billion in the 12 months to September 2024, a 5% increase from the previous year.
The Philippines: A Key Security Partner
Following the visit to Japan, the Foreign Secretary will travel to the Philippines to enhance cooperation with a key security partner in the region. Ensuring freedom of navigation and adherence to international law in the South China Sea is vital for maintaining safe and secure trade routes.
CBI’s Viewpoint
Louise Hellem, Chief Economist at the CBI, emphasized the importance of cooperation with Japan:
Cooperation with like-minded partners like Japan will be critical to achieving the government’s Growth Mission.
Louise hellem, Chief Economist at the CBI
Hellem also highlighted the opportunities for UK firms:
As a significant and growing trading partner, Japan’s economy offers unique opportunities for UK firms looking to expand and internationalise. this delegation is an important next step in our relationship, enabling both governments to explore deeper collaboration across topics like digital and technology, advanced manufacturing, and sustainability.
Louise Hellem, Chief Economist at the CBI
The CBI is committed to fostering a strong UK-Japan relationship:
As the voice of business, the CBI will continue to work closely with our Japanese sister federation – Keidanren – in the B7, B20 and bilaterally to promote a strong and mutually beneficial UK-Japan relationship.
Louise Hellem, Chief Economist at the CBI
UK and Japan Strengthen Ties: A Q&A on New Economic and defence Agreements
On March 6, 2025, the UK and Japan announced a new era of collaboration, focusing on boosting economic growth and security cooperation through strategic discussions and agreements. This article explores the key aspects of this partnership in a Q&A format.
Key Partnership Highlights
Economic 2+2 Ministers’ meeting: A strategic dialog recognizing the UK as a key partner.
Trade Boost: Enhancing the current £27 billion annual trade relationship.
Defence Cooperation: Creating jobs and bolstering security through joint projects like GCAP.
Frequently Asked Questions
What is the UK-Japan Economic 2+2 ministers’ Meeting?
The Japan-UK Economic 2+2 Ministers’ Meeting (“Economic 2+2”) is a strategic dialogue held on March 7, 2025. It signifies Japan’s recognition of the UK as a crucial partner, sharing this distinction only with the United States, for driving enduring growth and security. This meeting aimed to unlock the Japanese market for British businesses, leverage Japan’s £86 billion investment in the UK, and enhance defence industrial cooperation.
How will this partnership benefit UK businesses?
The partnership aims to provide UK businesses with greater access to Japanese industry, capitalizing on Japan’s position as a manufacturing powerhouse, ranking third globally in terms of value added to the manufacturing industry.Foreign Secretary David Lammy emphasized that closer collaboration with Japan would give UK firms more business and contribute to economic growth. The goal is to promote UK exports and foster joint research in future technologies.
What is the current state of trade between the UK and Japan?
The existing annual trade relationship between the UK and Japan is valued at £27 billion. UK exports to Japan totaled £14.7 billion in the 12 months leading up to September 2024,representing a 5% increase from the previous year. The new partnership seeks to further enhance this trade relationship.
How are the UK and Japan collaborating on defence and security?
The UK and Japan are engaging in joint defence industrial projects designed to create jobs across the UK while enhancing defence capabilities and safeguarding British security interests,notably in the Indo-Pacific region. A prime example of this collaboration is the Global Combat Air Programme (GCAP), a joint effort between the UK, Japan, and Italy.
what is the Global Combat Air Program (GCAP)?
The Global Combat Air Program (GCAP) is a joint initiative between the UK,Japan,and Italy to develop advanced fighter jets. This program currently employs over 3,500 individuals in the UK, including engineers and programmers, who work on building these jets to protect British security interests and international trade, while simultaneously boosting job creation in the UK.
What are the key areas of cooperation between the UK and Japan?
The Economic 2+2 fosters collaboration in various areas, including:
Commitment to a fair-trading system.
Joint research into future technologies.
Mutual investment to support growth and innovation in the defence industry.
How does this partnership support the UK’s industrial strategy?
The joint visit advances work on a modern, aspiring industrial strategy.japan stands as a meaningful investment partner, with 1,000 Japanese companies supporting 160,000 jobs in the UK.The UK’s accession to the Extensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),combined with the new economic partnership,will further strengthen this relationship.
What are the AI and offshore wind initiatives?
The Foreign Secretary and Business and trade Secretary hosted an AI business reception in Tokyo to promote the UK’s AI Opportunities Action Plan and explore new growth opportunities between British and Japanese AI sectors. The Business and Trade Secretary will also announce plans for a new industrial strategy partnership and sign a UK-Japan Memorandum of Cooperation on Offshore wind, supporting the UK’s race to net zero.
What is the CBI’s view on this strengthened partnership?
Louise Hellem, Chief Economist at the CBI, emphasized that cooperation with like-minded partners like Japan will be critical to achieving the government’s Growth Mission. Hellem also highlighted the unique opportunities for UK firms looking to expand and internationalize in Japan’s growing economy, particularly across digital and technology, advanced manufacturing, and sustainability.
Rapid Summary Table
| Area | key Benefit |
| :———————– | :————————————————————————– |
| Trade | Enhanced access to the Japanese market for UK businesses |
| Investment | leveraging Japan’s £86 billion investment in the UK economy |
| Defence | Joint projects creating jobs and bolstering security capabilities |
| Technology | Collaboration on AI and offshore wind initiatives |
| Industrial Strategy | Advancement of a modern industrial strategy, supported by Japanese investment |
| Job Creation | Increased job opportunities in the UK across various sectors |
| Security | Safeguarding British security interests in the Indo-Pacific region |
| International Relations | Strengthening ties with a key global partner |
