Japan has issued a stark warning to the Government over the risks Brexit poses to the county’s businesses operating in the UK.

Speaking after a Downing Street summit with 19 leaders from Japan’s biggest businesses with operations in the UK, the country’s ambassador raised the prospect of them pulling out of Britain.

"If there is no profitability of continuing operations in the UK - not Japanese only - then no private company can continue operations. It is as simple as that," Ambassador Koji Tsuruoka said when asked whether Japanese companies could leave if no trade deal is agreed.

"This is all high stakes that all of us, I think, need to keep in mind," the ambassador said, speaking outside No... </s> LONDON (Reuters) - Japan’s ambassador said on Thursday that no firm would be able to continue to operate in Britain if they are not profitable due to Brexit-related trade barriers.

Speaking outside Number 10 Downing Street after meeting Prime Minister Theresa May along with 19 Japanese business leaders, the ambassador had a clear message for Britain.

“If there is no profitability of continuing operations in the UK - not Japanese only - then no private company can continue operations. So it is as simple as that,” Koji Tsuruoka said when asked how real the threat was to Japanese companies of Britain not securing frictionless trade.

“This is all high stakes that all of us, I think, need to keep in mind,” he said.

May met the bosses of companies in areas such as banking, life sciences, technology and the manufacturing sector which have poured billions of pounds into Britain but are worried about future trading arrangements. </s> The future of a number of some of the North East’s largest employers has been called into question after Japan’s top ambassador said unprofitable firms may not stay after Brexit .

Japanese companies such as Nissan , Hitachi and Komatsu employ thousands of people across the North East, but Japanese ambassador Koji Tsuruoka warned that a bad trade deal with the EU could force many of these companies to leave the country.

His comments were made outside Downing Street after Mr Tsuruoka met with Prime Minister Theresa May and 19 heads of Japanese companies.

During the meeting Mrs May reiterated her promise that Brexit would allow the UK to strike a free trade deal with Japan.

But afterwards during a press conference the ambassador warned that if Japanese firms become unprofitable due to bad Brexit deals they will leave the UK.

Mr Tsuruoka said: “If there is no profitability of continuing operations in the UK, not Japanese only, no private company can continue operations. So, it is as simple as that.

“This is all high stakes and all of us need to keep in mind.”

He added: “Our Prime Minister has requested that the Japanese companies be fully consulted and listened to while the UK prepares to engage with the EU on relations of the future of the economic ties between the two.”

The view that many Japanese businesses could shut up shop is worrying news for the North East, which is home to a large number of Japanese firms.

As well as major manufacturers such as Nissan, Hitachi, and Komatsu, there are also a number of Japanese owned firms working in the automotive supply chain. These include Sunderland’s Sanoh Industrial Co, Calsonic Kansei, Stockton’s Nifco, Unipres, and NSK Bearings.

Mr Tsuruoka did not go as far as to say that Brexit negotiations were a “threat” to Japanese businesses operating in the UK, but he used the opportunity to call for more clarity to be given to the business community as the talks progressed.

“Uncertainty is a very important source of concern, as if you don’t know what will happen in the near future of course you will very reluctant to make any decision,” he said. “There is an importance of having clarity in the short term, as well as the longer term, and we have been told that the implementation period or transition period will be discussed and the prospect of agreeing with the EU is very positive. That is the first step that we will appreciate and welcome.”

The Japanese ambassador’s comments came just days after the Government released an impact report that predicted that the North East economy will be the worst hit by Brexit.

The forecast predicted that under a ‘no deal’ scenario growth in the region would be 16% lower than if the UK remained in the EU. Under a free trade arrangement growth would still fall by 11%, while remaining within the single market would lower the growth reduction to 3%.

Following the release of the report Ross Smith from the North East England Chamber of Commerce called for the Government to stop treating people like “idiots”, and asked politicians to reconsider leaving the Customs Union. </s> Japan's ambassador has warned the Prime Minister of the "high stakes" of Brexit following talks in Downing Street.

Koji Tsuruoka, speaking outside Number 10, claimed international companies could close their operations in Britain if there is "no profitability" in staying.

He delivered a warning to the Government as Cabinet ministers continue to debate the form of Britain's post-Brexit relationship with the EU.

After talks between Government ministers and Japanese business leaders, the ambassador said: "If there is no profitability of continuing operation in the UK - not Japanese only - no private company can continue operation.

"So, it's as simple as that. This is all high stakes that I think all of us need to keep in mind."

Campaigners said Mr Tsuruoka's comments revealed how thousands of UK jobs could be put at risk due to Brexit.

Earlier this week, under pressure from Tory Brexiteers, Downing Street ruled out UK membership of a customs union with the EU after Brexit, in order to preserve an ability to sign independent trade deals with non-EU countries.

Mr Tsuruoka said he would not answer "hypothetical" questions about future UK customs relations with the EU, but said it is "expected that manufacturing business in particular will continue to have the free access to the European market".

He highlighted how past British governments had encouraged Japanese investment by painting the UK as the "gateway to Europe".

However, the ambassador stressed Japan had also been making representations to Brussels "to make the point that the continuation of healthy, sound trade relations between the UK and EU is benefiting not just the UK but also the EU and enhances the global economy as a whole".

"Japan is playing a major role on both sides as a major investor," he said.

Mr Tsuruoka said Japanese companies would like to continue their "successful" operations in the UK, but added they were "watching very closely" and wanted to "see clarity and certainty".

Thursday's talks between Government and Japanese business leaders was attended by Theresa May, Chancellor Philip Hammond, Business Secretary Greg Clark and International Trade Secretary Liam Fox.

Alongside Mr Tsuruoka, bosses from Hitachi, Mitsubishi, Honda, Toyota and Nissan were among the Japanese delegation.

Downing Street said the Prime Minister had used the talks to "set out her vision for an outward-looking, global Britain", while also presenting the Government's industrial strategy, published late last year.

Japanese business leaders "spoke of their desire to continue trading with and investing in the UK", according to a spokesperson.

"Business representatives expressed their appreciation for the opportunity for constructive dialogue with the Government, and agreed on the importance of the time-limited implementation period in providing clarity and certainty for people and businesses," they added.

"There was also agreement on the importance of moving quickly in the negotiations to secure a trading relationship with the EU that is as tariff-free and frictionless as possible following the implementation period."

Responding to the ambassador's comments, Labour MP Phil Wilson, a supporter of the pro-EU Open Britain campaign, said: "If the Government doesn't get its act together soon, we could be saying 'Sayonara' to Japanese businesses based in the UK.

"Japanese companies have invested in this country, supporting more than 160,000 jobs, largely on the basis that it provides a bridge into a the wider European market.

"If that bridge collapses, their investment will dry up." </s> LONDON (Reuters) - Japan warned Prime Minister Theresa May on Thursday that its companies would have to leave Britain if trade barriers after Brexit made them unprofitable.

Japanese firms have spent more than 40 billion pounds ($56 billion) in Britain, encouraged by successive governments since Margaret Thatcher promising them a business-friendly base from which to trade across the continent.

But after May and several of her top ministers met bosses from 19 Japanese businesses, including Nissan, SoftBank and bank Nomura, Japan’s ambassador to Britain issued an unusually blunt warning on the risks of trade barriers.

“If there is no profitability of continuing operations in the UK - not Japanese only - then no private company can continue operations,” Koji Tsuruoka told reporters on Downing Street when asked how real the threat was to Japanese companies of Britain not securing frictionless EU trade.

“So it is as simple as that,” he said. “This is all high stakes that all of us, I think, need to keep in mind.”

Japan, the world’s third largest economy, has expressed unusually strong public concerns about the impact of Brexit on the United Kingdom, the second-most important destination for Japanese investment after the United States.

In a warning after the shock 2016 Brexit vote, Japan expressed fears about a cliff edge that could disrupt trade when Britain formally leaves the bloc in March 2019.

Major corporations have sought a two-year transition period, which they hope will ease Britain into its new relationship with the bloc.

Both London and Brussels hope to agree a transition deal lasting until the end of 2020, in which Britain would remain in the single market and be bound by all EU laws, by a March 22-23 summit.

May and her ministers assured Japanese businesses of the importance of maintaining free and frictionless trade after Brexit during the meeting but said nothing firm on the matter, a source familiar with the discussions told Reuters.

“The point about frictionless trade and tariff-free trade was made in the meeting and acknowledged by the government and all sides as being important but nothing firm,” said the source, who spoke on condition of anonymity.

A spokesman at May’s office said she had agreed with them on the need to move on quickly in the Brexit talks to secure a trading relationship with the EU that is as tariff-free and frictionless as possible after the transition period.

Thursday’s meeting came after a Brexit sub-committee of ministers discussed their Brexit strategy including how closely Britain should remain aligned with the EU and its customs union, a divisive issue for the ruling Conservatives.

Brexit minister David Davis said there was still progress to be made in the committee, after disagreements between ministers erupted into the public domain.

Hitachi Europe’s Deputy Chairman Stephen Gomersall, Mitsubishi CEO for Europe and Africa Haruki Hayashi, SoftBank Investment Advisers UK CEO Rajeev Misra and Nomura’s Executive Chairman in Europe, the Middle East and Africa Yasuo Kashiwagi joined the meeting with Japanese investors.

Nissan’s Europe Chairman Paul Willcox, Honda’s Senior Vice President in Europe Ian Howells and Toyota’s Europe President and Chief Executive Johan van Zyl were also present.

Collectively the three carmakers build nearly half of Britain’s 1.67 million cars. </s> LONDON (AP) - Japan's ambassador to Britain said Thursday that Japanese businesses in the U.K. expect continued access to the European Union market after Brexit.

Koji Tsuruoka said Japanese firms "have a high stake" in the outcome of divorce negotiations between Britain and the EU.

Speaking after a meeting with Prime Minister Theresa May and Japanese business leaders at 10 Downing St., Tsuruoka said Japanese firms based in Britain counted on access to the EU market. He said "the question is whether the arrangements that will be reached between the two sides will allow the Japanese companies, who are willing and in some ways determined to continue to operate in the U.K., to allow them to make that happen."

He said Japanese companies were "watching very closely" the progress of Brexit negotiations.

Japanese government figures say some 879 Japanese companies employ 142,000 staff in Britain.

May and Treasury chief Philip Hammond met the ambassador and executives of major Japanese firms including Toyota, Mitsubishi, Panasonic and Nissan, whose car plant in Sunderland, England, employs 7,000 people.

Thursday's talks came amid growing anxiety among business leaders about the shape of Britain's upcoming departure from the EU because of uncertainty on what trade relations will look like.

Even as the March 2019 exit draws closer, the U.K. government remains divided over how close a relationship it wants to keep with the EU. May's Cabinet is divided between those who want to remain close to the EU's single market and customs union and those who want a clean break so Britain can strike new trade deals around the world.

After the meeting, May's office said Britain wanted to become "an even more attractive destination" for Japanese investment.

Downing St. said that after Brexit, "the U.K. and Japan will work quickly to establish a new economic partnership" based on a free-trade deal the bloc is finalizing with Japan. </s> There is no question what Japan thinks about Britain leaving the European Union.

Ever since the UK voted for Brexit in June 2016, Japan has spoken out about the nation leaving the EU single market, which would create costly problems for companies operating within Britain. And because of Japan’s intertwined ties with Britain’s economy, it is fast trying to position itself as a key influence over what the final Brexit deal will look like.

Yesterday (Feb. 8), Japan’s ambassador to the UK, Koji Tsuruoka, told reporters following a meeting between prime minister Theresa May and 19 top Japanese bosses that “if there is no profitability of continuing operations in the UK—not Japanese only—no private company can continue operations. So it is as simple as that.” It was the latest in a line of very blunt assessments about Brexit and what effect it would have on foreign companies operating in the UK.

In 2016, Japan’s foreign ministry released a 15-page document addressing the potential damage to Britain’s economy if the UK leaves the single market—something the UK government has repeatedly said it will do. It warned that businesses and banks are likely to relocate operations because Britain leaving the single market makes Japanese businesses “face difficulties.”

This is something that is already starting to happen (paywall). Japan’s biggest bank, Mitsubishi UFJ, is looking to relocate its UK investment-banking operations (paywall) from London to Amsterdam. Frankfurt has also been floated as an alternative to London for other Japanese financial firms such as Nomura, Daiwa, and Sumitomo Mitsui. Meanwhile, car maker Nissan warned in 2016 that it may have to relocate jobs from its plant in the north of England, until the UK government gave assurances that the country would “remain competitive” post-Brexit.

Japan is being incredibly vocal over what it thinks about Brexit because of the close trade relationship it has with the UK. Currently, the UK imports around $13.7 billion in goods a year from Japan, making it Britain’s 10th-largest trading partner. The 1,000 Japanese companies that operate in the UK also employ some 140,000 people.

Prime minister May and her cabinet have repeatedly said that Britain doesn’t need to stay in the single market because it is able to forge trade deals across the world. She reiterated this point after her meeting with the Japanese ambassador, saying she recognizes that Brexit is “no small undertaking, but importantly it does present the opportunity to strike free-trade deals around the world and build on our already very strong relationship that we have with Japan.”

However, severing ties to the EU’s single market means relinquishing unified import and export rules and costs. One recent report showed that if the UK government decided to pursue the “hard Brexit” route, it would increase prices for UK exports, which could make EU consumers switch to domestically produced goods instead. This in turn would lead to a £17 billion ($22.7 billion) fall in annual EU export revenues across key UK manufacturing sectors. </s> Prime Minister Shinzo Abe has urged Boris Johnson, Britain’s incoming prime minister, to avoid a no-deal exit from the European Union.

The request was included in a message, sent on Tuesday to congratulate the former foreign secretary on being elected leader of Britain’s ruling Conservative Party.

Abe said he strongly hopes that Britain will continue to listen to voices from the business world, including those from Japan-affiliated companies, and to lead a free and active economy in Europe and around the globe.

Abe said he has high hopes for an orderly Brexit to minimize the negative effects of the move on Japan-affiliated firms in Britain and on the world economy.

Abe also voiced eagerness to deepen ties between Japan and Britain. He said Tokyo wants to work closely with London in tackling international and regional issues, including in security and defense.

On Wednesday, Chief Cabinet Secretary Yoshihide Suga echoed Abe’s remarks, saying Tokyo will continue to urge Britain not to leave the European Union without a deal.

“We have been watching the situation surrounding Britain’s exit from the EU with great interest, and have asked both Britain and the EU to ensure that the negative impact, including of a no-deal exit, on Japanese companies and the global economy is kept to a minimum,” Suga told a news conference.

“Our stance on the issue remains unchanged, and we will be closely watching the new government’s actions,” he added.

Johnson was one of the biggest figures in the campaign for the 2016 referendum on Brexit and has vowed to take Britain out of the European Union by the Oct. 31 deadline.

Johnson, best known for his gaffes, rhetorical flourishes and turbulent love life, was announced as the new party leader on Tuesday.

The 55-year-old was scheduled to officially take over the reins of power during a meeting with Queen Elizabeth II at Buckingham Palace on Wednesday.

Johnson’s predecessor Theresa May was forced out after failing to get Parliament to support a Brexit deal she struck with EU leaders that he has promised to overhaul, despite Brussels insisting no changes are possible.

During his victory speech on Tuesday, Johnson urged the country to “ping off the guy ropes of self-doubt and negativity” and pledged to unite a badly divided country.

But his promise of leaving the European Union with or without a deal puts him on a collision course with high-profile MPs in his own party who do not want a no-deal Brexit, threatening his wafer-thin majority and raising the prospect of an early general election.

The former London mayor easily beat his rival, Foreign Secretary Jeremy Hunt, in a vote of party members.

U.S. President Donald Trump was the first world leader to offer his congratulations, saying: “He will be great!”

Johnson has never hidden his ambition for power, using his trademark jokes and bluster to pull off unlikely electoral victories, but he takes over at a time of immense upheaval.

Three years after the referendum vote to leave the EU, Britain remains a member after twice delaying its departure.

Johnson led the 2016 “Leave” campaign and — after May delayed Brexit twice — insists the latest deadline must be kept, calling it a “pivotal moment” in Britain’s history.

“We’re going to get Brexit done on October 31,” he declared after winning 66 percent of almost 160,000 votes cast.

However, Brussels says it will not renegotiate the divorce deal it struck with May to end the 46-year partnership — even though MPs rejected it three times.

EU negotiator Michel Barnier said he wanted to work with Johnson “to facilitate the ratification of the withdrawal agreement and achieve an orderly Brexit.”

Johnson faces significant opposition from parliament over his threat to leave with no deal, including from Conservative colleagues.

Addressing party members after his win, Johnson promised to “work flat out from now on,” saying he would announce his top team in the coming days.

His government has a majority of just two — 320 votes to 318 — in parliament’s lower House of Commons and Westminster is watching for any signs of an immediate challenge to his power.

The main opposition Labour Party is not expected to force a confidence vote this week.

MPs are expected to go on their holidays on Friday, giving Johnson some breathing room over the summer to try to get a new Brexit deal.

But when he returns, if “no deal” looks likely, many MPs have vowed to stop him — a move that could trigger an early election. </s> Japanese electronics giant Panasonic has become the latest firm to announce plans to shift its European headquarters out of the UK ahead of Brexit.

The group is moving its European head office to Amsterdam in October to avoid potential tax issues related to the UK’s withdrawal from the EU next March, according to the Nikkei Asian Review newspaper.

It is the latest multinational firm to pull jobs and operations out of the UK, amid growing concern over the Government’s protracted negotiations and possible no-deal scenario.

Planemaker Airbus warned in June it could quit the UK if Britain leaves without a trade deal, while Unilever announced in March it was moving its corporate HQ to Rotterdam, although it has claimed the decision is not Brexit-related.

It is understood that Panasonic’s decision is linked to concerns that Japan could see the UK as a tax haven if it cuts corporation tax to attract businesses post-Brexit.

If it that was the case, Panasonic could face higher taxes back in Japan.

A number of other Japanese firms have revealed plans to move their European bases out of the UK, including banking giants Nomura Holdings, Daiwa Securities, MUFG and Sumitomo Mitsui Financial Group.

Carmakers Honda and Nissan are also among a raft of Japanese firms that employ large workforces in the UK.

It is thought there are 879 Japanese companies employing 142,000 staff in Britain, including Honda and Nissan.

Panasonic would reportedly move staff dealing with auditing and financial operations out of the UK following the switch to Amsterdam, but keep those dealing with investor relations in Britain.

It is believed that up to 20 out of 30 employees could be affected.

Other major firms that have announced plans to pull staff out of the UK due to Brexit include banking group HSBC, which plans to move up to 1,000 jobs to France, while JP Morgan has said around 1,000 front and back-office roles are likely to be relocated from London. - Reuters
After a meeting with top Japanese business and British government executives in 10 Downing Street, Japan's ambassador to Britain warns that companies may discontinue their UK operations if a Brexit without a new trade deal makes them unprofitable.