In a significant development, Prime Minister Rishi Sunak announced that Japanese companies will invest more than $22 billion in the UK. During his visit to Tokyo ahead of the G7 summit in Hiroshima, Sunak emphasized the massive vote of confidence in the UK economy represented by the £17.7 billion ($22.1 billion) investment. The funding includes a planned £10 billion for offshore wind and hydrogen energy projects by Japanese trading house Marubeni.
Sunak highlighted these deals as tangible outcomes of post-Brexit Britain's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), making it the first non-regional economy to do so. However, the challenges posed by the UK's departure from the EU remain a concern for businesses.
European carmaker Stellantis has cautioned that it may have to close some of its UK factories unless the British government amends Brexit trade rules to facilitate the supply of electric vehicle batteries. Ford, Jaguar Land Rover, and the German car industry lobby group VDA have also expressed their support for maintaining tariff-free access, despite the approaching deadline set by the EU-UK Brexit deal.
Sunak acknowledged these concerns raised by car manufacturers across Europe and confirmed that discussions with the EU are underway to address them, particularly regarding the automotive manufacturing sector. The aim is to find solutions that alleviate the industry's worries and ensure continued growth and success.
The Japanese investment serves as a significant boost to the UK economy and underscores the country's attractiveness as a global investment destination. Prime Minister Sunak's visit to Tokyo further strengthens bilateral ties and showcases the UK's commitment to forging international partnerships post-Brexit.
