‘Beyond the Galapagos Syndrome’: Mapping the Future of UK-Japan Economic Cooperation Luke Cavanaugh (ed.), Olivia Bisbee, Owain Cooke, Kezzie Florin-Sefton, Elizabeth Steel
that stabilises bilateral trading relations. However, the CEPA alone is not sufficient to provide security for Japanese businesses and investors, and Brexit remains a critical source of concern and uncertainty that will likely not be resolved in the near future. If Britain is unable to maintain its position as a strong European base for international business, Japanese companies may seek to move into the EU or reduce their presence in the UK, hence proactivity from British leaders is much needed. On the other side of the relationship, British businesses seeking to capitalise on the trade deal with Japan also face some uncertainty in terms of assessing Japan’s future strategies and navigating the complex geopolitical situation in the Asia-Pacific. Japan’s tense political relationship with China (complicated by their close economic ties) and the UK’s own ambiguous relationship with China will strongly influence both of their economic activities in Asia, regardless of the strength of the UK-Japan bilateral relationship. The geopolitical and strategic aspects of the UK and Japan’s relationship, while closely linked to their economic relationship, cannot be explored in depth in this paper, which will instead, in the recommendations, focus upon steps each government can take to strengthen and further their economic relationship on both a bilateral and multilateral level. The UK-Japan CEPA has been praised by policymakers from both countries as opening new avenues for trade between the two countries, bringing the two economies even closer. While the trade agreement itself represents a commitment to cooperation and partnership, to reach its full potential it will require long-term commitment from businesses and government in both countries. It could serve to alleviate concerns about political and economic changes in both Europe and the Asia-Pacific by providing both countries with a steady partner, but the outcome of this remains unclear. By building on the success of UK-Japan negotiations on CEPA, both governments can continue to forge new partnerships, possibly in tandem, on the multilateral level.
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