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Exporting from the UK to Japan: A market guide

Overview

Japan is currently the third largest economy in the world. With our new free trade agreement, we have entered an exciting new chapter in trading relations between the UK and Japan.

Trade statistics

£13.8 billion total UK exports to Japan for the four quarters to the end of Q2 2024

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2024)

17th largest UK export market

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2024)

1.6% of total UK exports for the four quarters to the end of Q2 2024

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2024)

UK’s Free Trade Agreements with Japan

The UK has two Free Trade Agreements (FTAs) with Japan: the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) which came into force on 1 January 2021 and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam). CPTPP entered in force between the UK and Japan on 15th December 2024.

How to Utilise the FTAs with Japan

The FTAs with Japan make exporting to Japan cheaper, faster and more secure for UK businesses.

Benefits include:

  • more flexible rules of origin when exporting goods that are better suited to modern supply chains
  • equal treatment and improved business environment for UK businesses operating in Japan
  • easier travel rules for UK businesspeople wishing to deliver services in Japan

The UK-Japan FTA and CPTPP are in force simultaneously. Some of the provisions will apply automatically, whilst others may require you to take action first before you can benefit or will need to specify which agreement you choose to trade under (notably when applying rules of origin). The action(s) you will need to take also depends on the type of goods or services you are selling.

Strong support for trade with Japan

To help businesses trade with Japan, the Department for Business and Trade (DBT) has launched our Export to Japan hub, for free information on trading with Japan, including detailed market research, events, industry guides, and practical step-by-step exporting advice.

Top five UK goods exported to Japan , in the four quarters to the end of Q2 2024

Goods Value (£ million )
Mechanical power generators (intermediate) 923.2
Cars 871.3
Medicinal & pharmaceutical products 585.4
Non-ferrous metals 368.9
Miscellaneous electrical goods (intermediate) 312.3

Source: ONS Trade in goods: country-by-commodity exports
Last updated: October 2024
Download the latest trade and investment factsheet for Japan.

Top five UK services exported to Japan , in the four quarters to the end of Q2 2024

Service Value (£ billion )
Other Business Services 2.4
Financial 2.2
Telecommunications, computer and information services 0.9
Insurance and Pension 0.7
Intellectual property 0.4

Source: ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: October 2024
Download the latest trade and investment factsheet for Japan.

Japan: at a glance

Economic growth

1.7%

Actual figure (IMF, 2023)
The UK is 0.1% (IMF, 2023, projected figure)

GDP per capita

$33,806

Actual figure (IMF, 2023)
The UK is $49,099 (IMF, 2023, projected figure)

Currency

Japanese yen

Business languages

English is widely spoken in business

Time zone

GMT + 9

Want to see more on Japan? Sign up for additional market data, content specific to your product or sector and to compare Japan side by side with other markets.

Opportunities for exporters

Japan is an advanced economy, with a large, rich and highly-educated consumer market who are early adopters of new products and services.

Check for trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.

See current trade barriers

See resolved trade barriers

Check duties and customs

Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.

See current duties and customs procedures

Doing business in Japan

Businesses aiming to enter or expand in Japan may find differences in social and business customs daunting. To support your journey, DIT have partnered with Export to Japan to provide step-by-step exporting guides, bespoke tools, resources, and events.

Preparing to export

Tax

You can find information on tax in Japan for businesses in JETRO’s guide on taxes in Japan.

Customs

The Japan Customs website introduces the customs system and trade procedures. It also provides links to regional offices.

Standards and technical regulations

Japanese domestic standards often differ from international norms.

The Japanese Standards Association has responsibility for Japanese industrial standards, covering a wide range of business areas and topics.

Intellectual property

Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office’s International IP Service provides practical information to help you protect, manage and enforce your IP abroad. Further support can be accessed through the service’s network of IP attachés. Based in key UK export markets, they provide guidance to British businesses on local IP matters.

Trade barriers

Check for any reported barriers to trading with Japan.

Report any trade barriers that are affecting your business so we can help fix them.

Operating in Japan

Routes to market

The Japanese market is unique, as are its methods of doing business and building client relationships. It's important to perform thorough research before deciding on a strategy for operation in the market.

Options which may work well for you are:

  • establishing direct relationships over time - doing business in Japan can be profitable, but you'll find things can move more slowly than Western Europe or the US. Commitment and stability matter. It’s likely to take time to meet with the buyer, receive a first trial order, and when trust has been established, become a supplier. This process can take up to a couple of years, even for local Japanese salespeople.

  • using agents and distributors - as in other overseas markets you can appoint an agent or distributor who can assist with negotiating the difficulties of language and culture.

  • setting up a company - many exporters find that appointing their own manager or setting up a company, rather than using a representative, is a more focussed and successful way to break into this complex market

JETRO (Japan External Trade Organization), the government agency responsible for inward investment, can provide free office space in central Tokyo and several other locations. Whilst Tokyo would seem to be the obvious location, Osaka is an excellent option with lower start up costs.

Business relationships

You will work best with Japanese cultural differences if you:

  • make a long term commitment and do not expect to generate short term results
  • demonstrate your commitment to the market through regular engagement
  • are very information-oriented
  • are not deterred by the bottom up and consensus building decision-making process
  • take trial orders seriously as this is a key element of building relationships
  • build personal relationships

Read the Department for Business and Trade (DBT) Japan’s business etiquette guide for more details on business behaviour in Japan.

Next steps

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