Japan Warns Over Brexit During G20 Talks
Rukhshan Mir (@rukhshanmir) Published September 05, 2016 | 12:15 PM
HANGZHOU, China,(UrduPoint / Pakistan Point News -5th Sep,2016) - Tokyo has issued its boldest warning yet over the potential fallout from Brexit, saying Japanese firms may shift key operations from Britain to Europe if they lose free access to the single market.
With a G20 summit under way in China, a Japanese government taskforce told Britain and the EU to minimise the "harmful effects" of Brexit on firms that treat the UK as a gateway to Europe. Some of Japan's best-known companies, including Toyota, Hitachi and investment bank Nomura, are re-assessing their UK investments after Britain voted in June to quit the 28-member EU, according to a report issued by Tokyo.
"Japanese businesses with their European headquarters in the UK may decide to transfer their head-office function to Continental Europe if EU laws cease to be applicable in the UK after its withdrawal," said the 15-page document, published late Friday.
The topic is almost certain to come up if Japanese Prime Minister Shinzo Abe and British leader Theresa May hold a meeting on the sidelines of the G20 talks in Hangzhou.
US President Barack Obama said at a joint briefing Sunday with May that they had discussed trade and both countries aim to "ensure that we don't see adverse effects" in their commercial ties.
Japan has warned that some of its firms were lured to Britain by its sales pitch as a launching pad for tapping the much-larger European market -- adding that London has a duty to hammer out a Post-Brexit deal that protects Japanese companies.
"We strongly request that the UK will consider this fact seriously and respond in a responsible manner to minimise any harmful effects on these businesses," the report said. More than 1,000 Japanese companies do business in Britain, employing some 140,000 local people, and Japan's direct investment in the country has topped 10 trillion Yen ($96 billion) to date.
The report also urged Britain and the EU to make the Brexit negotiation process transparent to avoid "unpleasant surprises". "Uncertainty is a major concern for an economy," it said.
Related Topics
Recent Stories
At least 10 people killed in Brazil fire: officials
Shahzaib Rind calls on Deputy Speaker Balochistan
Ahsan chairs 13th CPEC-JCC preparatory meeting, reviews arrangements for high-le ..
DC Tharparkar inaugurates anti-polio campaign
HDA Mehran workers demand salaries
Taxila police nab motorcycle lifter gang
Inter-university weightlifting championship kicks off at SAU
Walk held in a series of enrollment campaigns
Team from Gaza mediator Egypt arrives in Israel for truce talks
Kids murders: IHC orders psychiatric examination of mother
Health minister credits PML-N for advancements in organ transplantation
Court grants interim bail to Azam Swati in cyber crime case
More Stories From Business
-
Ahsan chairs 13th CPEC-JCC preparatory meeting, reviews arrangements for high-level delegation’s v ..
7 minutes ago -
Police to take every step for security of business community: IGP
6 minutes ago -
WB director, Planning minister discuss reforms in development projects
15 minutes ago -
IP rights crucial in achieving SDG : Jam Kamal
2 hours ago -
FBR’s data protection efforts commended by OECD assessment team
2 hours ago -
US stocks rebound on tech earnings, London hits new record
2 hours ago
-
SECP-IFSB workshop highlights Pakistan's progress in Islamic Finance Development
2 hours ago -
SBP to announce monetary policy on April 29
2 hours ago -
50pc cut in subsidy of BRT service likely: CM’s aide
3 hours ago -
PSX gains 771 points
4 hours ago -
Pakistan, US hold 7th TIFA meeting to strengthen trade and investment ties
5 hours ago -
Meeting held to streamline trade between Pak-Afghan , Central Asian Republics
4 hours ago