Strategic Realignment: Post-Brexit Economic Relations between the UK and Japan

This paper examines the strategic realignment of UK-Japan economic relations in the post-Brexit era, focusing on the evolving geopolitical context, trade and investment trends, and the significance of the UK-Japan Comprehensive Economic Partnership Agreement (CEPA). Following Brexit in 2020, the “Global Britain” strategy has sought to expand trade relations beyond Europe, positioning Japan as a strategic anchor in the Indo-Pacific. Japan’s role as a major economic power, its leadership in high-value manufacturing and global finance, and its stewardship of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) make it a natural partner for the UK. The paper outlines bilateral trade and investment patterns, the development of political and economic cooperation mechanisms-including the Reciprocal Access Agreement and the economic “2+2” dialogue in 2025, and their implications for security and market integration. A detailed analysis of CEPA highlights its negotiation background, key provisions, and departures from the EU-Japan Economic Partnership Agreement. While CEPA ensures trade continuity and introduces sector-specific enhancements, its symbolic significance may outweigh its immediate economic impact, given the structural constraints and continued dependence on EU market access.