Analysis by Deloitte, in partnership with GMCA and MIDAS, has found that in the last ten years, North-west firms have exported more than £5.5 billions of goods to Japan.
In the period 2010 to 2019, annual exports to the Asian nation and world’s third-largest economy averaged at £550 million, with 2012 seeing the highest figure at £795 million of trade from the region’s businesses.
Trading relationships between Japan and the North-west have been strengthened in a number of sectors, with the chemical products sector accounting for £3.4 billion of exports, or 62% of total trade. Machinery and transport and the manufacturing sectors (accounting for £1.3 billion and £765 million respectively) also saw significant interest.
Interest in manufacturing products especially has continued to grow year on year, with 2019’s figures the highest since 2014, which saw £780m of goods exported.
The UK has also demonstrated its commitment to building on this valuable trading relationship in recent months, agreeing the UK-Japan Comprehensive Economic Partnership Agreement in September 2020. Across the country, the deal could increase trade by £15.2bn, giving a £1.5bn boost to the economy and increasing workers’ wages by £800m.
Jo Ahmed, Global Employer Services Partner at Deloitte, and Honorary Consul of Japan in Manchester, said:
Japan represents an enormous growth opportunity for many businesses in the North West, both in terms of direct exports and ongoing collaboration and joint ventures. As we have seen, there has been a huge amount of appetite and investment from Japanese businesses in North West products, which has brought with it significant economic benefits for the local area.
“With Japan’s wealth of experience in the low carbon sector, the country represents a hugely valuable partner when it comes to meeting Greater Manchester’s ambitious carbon neutral targets by 2038. We have already seen inward investment focused on Clean Growth, with a consortium including Kansai Electric Power taking a 50 per cent stake in Electricity North West in July last year.
“This, coupled with the UK-wide free trade agreement, highlights the opportunities that Japan presents to the region’s businesses, and we expect to see both export and import figures grow as this relationship develops in the coming