Abstract
Japan is a significant trade partner for the European Union, benefiting from equal access to member country markets. The United Kingdom absorbs around 20% of Japan’s total exports to the EU and is home to nearly 1000 Japanese companies. In June 2016, however, the UK voted in a national referendum to leave the EU. The prospect of Britain exiting the 28-nation bloc has posed a number of political and economic challenges to not only EU member states, but also their partners outside Europe. If the UK leaves the EU, Japan could suffer from weaker exports to the EU, a decline in FDI or exchange rate fluctuations. This, in turn, could undermine Japanese Prime Minister Shinzo Abe’s economic policy known as Abenomics. The Japanese government, in a document entitled Japan’s Message to the United Kingdom and the European Union, explicitly described its concerns regarding the UK’s exit process, among which uncertainty surrounding Brexit negotiations is seen as a major factor.
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Notes
- 1.
Brexit Unknowns, Miller V. et al., 9 November 2016, House of Commons Library, p. 4, researchbriefings.files.parliament.uk/documents/…/CBP-7761.pdf. Accessed 11 May 2017.
- 2.
Kuroda, H., Governor of the Bank of Japan, Speech at the Council on Foreign Relations in New York, 10 October 2013, https://www.boj.or.jp/en/announcements/press/koen_2013/ko131010a.htm/. Accessed 1 November 2017.
- 3.
Country Report No. 17/242, IMF, p. 3. https://www.imf.org/en/News/Articles/2017/07/31/NA073117-For-Japan-Economy-Now-Is-the-Time-to-Step-Up-Reforms. Accessed 15 October 2017.
- 4.
Ibidem., p. 81 (Statement by Masaaki Kaizuka, Executive Director for Japan; Yoshihito Saito, Alternate Executive Director; and Masahiko Takeuchi, Advisor to Executive Director, 26 July 2017, p. 4).
- 5.
Cabinet Office, http://www5.cao.go.jp/keizai3/getsurei-e/2017oct.html. Accessed 15 October 2017.
- 6.
The Impact of Brexit on the Japanese Economy (英国のEU離脱と日本への経済的影響), Issue Brief No. 916, p. 10, August 2, 2016, http://dl.ndl.go.jp/view/download/digidepo_10159408_po_0916.pdf?contentNo=1. Accessed 15 October 2017.
- 7.
http://www.mofa.go.jp/files/000185466.pdf. Accessed 15 October 2017.
- 8.
Japan -UK Joint Vision Statement, August 2017, http://www.mofa.go.jp/mofaj/files/000285436.pdf. Accessed 3 November 2017.
- 9.
JETRO, https://www.jetro.go.jp/biznews/2017/08/c319fe23c7f8d068.html. Accessed 3 November 2017.
- 10.
http://www.mofa.go.jp/mofaj/area/uk/data.html. Accessed 3 November 2017.
- 11.
http://www.mofa.go.jp/mofaj/area/uk/data.html. Accessed 3 November 2017.
- 12.
https://asia.nikkei.com/Business/Companies/Nissan-bolstering-UK-production-as-split-with-EU-looms. Accessed 3 November 2017.
- 13.
- 14.
JETRO, https://www.jetro.go.jp/en/news/releases/2016/a329b6907c73f177.html. Accessed 15 October 2017.
- 15.
The Japan Times, https://www.japantimes.co.jp/news/2017/07/17/business/brexit-approaches-japanese-financial-firms-cementing-footholds-europe/. Accessed 5 November 2017.
- 16.
National Security Strategy, 17 December 2013, p. 26. https://www.cas.go.jp/jp/siryou/131217anzenhoshou/nss-e.pdf. Accessed 5 November 2017.
- 17.
http://ec.europa.eu/trade/policy/countries-and-regions/countries/japan/. Accessed 5 November 2017.
- 18.
European Union External Action, https://eeas.europa.eu/headquarters/headquarters-homepage/19223/eu-japan-political-relations_en. Accessed 5 November 2017.
- 19.
EU-Japan Economic Partnership Agreement, 1 July 2017, pp. 3, 5. http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155684.pdf. Accessed 5 November 2017.
- 20.
http://www.mofa.go.jp/press/kaiken/kaiken4e_000414.html. Accessed 15 January 2018.
- 21.
http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155693.doc.pdf. Accessed 15 January 2018.
- 22.
日EU・EPA交渉大枠合意の意義。日本の通商戦略の再起動、みずほインサイト、みずほ総合研究所、, https://www.mizuho-ri.co.jp/publication/research/pdf/insight/pl170712.pdf. Accessed 15 January 2018.
- 23.
http://www.mofa.go.jp/mofaj/files/000013819.pdf. Accessed 5 November 2017.
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Dzienis, A.M. (2018). The Potential Impacts of Brexit on the Japanese Economy. In: Kowalski, A. (eds) Brexit and the Consequences for International Competitiveness. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-03245-6_13
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