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Nikkei latest on UK Japan FTA: A portion of automotive components will need to originate only 50% of the content from the two countries to qualify for preferential tariffs. The ratio is lower than the 55% threshold in place for the Japan-EU trade deal. https://asia.nikkei.com/Economy/Trade/Japan-UK-trade-deal-keeps-low-tariffs-for-cars-made-with-EU-parts
I needed another coffee to understand, but I think this is the key point "This opens up market access to the U.K. for products assembled in Japan containing material heavily sourced from such places as Southeast Asia."
"If the same provision, known as "extended cumulation," is not applied to Japanese parts under the UK-EU trade deal, Japanese manufacturers will be forced to rework their supply chains." Presumably this means Japanese manufacturers will have to source more components from EU/UK?
Which you'd think EU and UK would be happy to have happen. Or would Japanese manufacturers say they can't source cost effective components in EU/UK, so will just export final product directly from Japan? I might need more coffee to understand this. Or walk the dog.
