UK and Japan sign investment partnership to drive economic growth
Source: gov.uk (2025-07-10)

New partnership paves way for increased UK investment into Japan, supporting Prime Minister Ishiba's ambitious foreign investment targets.

(https://assets.publishing.service.gov.uk/media/686f5ab9a08d3a3ca3b679a1/UK-Japan_Investment_MoC.odt)

UK-Japan Investment MoC July 2025 (https://assets.publishing.service.gov.uk/media/686f5ab9a08d3a3ca3b679a1/UK-Japan_Investment_MoC.odt)

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The UK and Japan yesterday signed a Memorandum of Cooperation (MoC) aimed at enabling increased UK investment into Japan, further strengthening the economic ties between the two nations.

The agreement was signed at the British Embassy in Tokyo by Baroness Poppy Gustafsson of Chesterton CBE, UK Minister for Investment, and Mr. Seto Takakazu, State Minister of the Cabinet Office of Japan, who played an important role in compiling the ‘Program for Promotion of Foreign Direct Investment in Japan 2025’ last month.

This strategic partnership establishes a formal framework for collaboration to accelerate UK investment into Japan, supporting Prime Minister Ishiba’s ambitious target of more than doubling Japan’s foreign direct investment stocks to JPY120 trillion (approximately £600 billion) in 2030.

Minister for Investment Baroness Poppy Gustafsson CBE said:

The UK and Japan share a deep and enduring partnership that is committed to mutual prosperity and growth. That’s why I’m delighted to sign this new partnership with Japan – capitalising on the major opportunities for UK businesses to bring their innovative offers to Japan and grow in the Japanese economy.

Key growth sectors with strong potential for increased UK investment include clean energy, digital transformation, biotechnology and healthcare, alongside enabling sectors such as legal, professional and financial services.

This aligns with the UK’s new Industrial Strategy, which sets out plans to transform the UK’s clean energy, digital and technologies, and life sciences sectors over the next decade – providing businesses with the stability and certainty to make long-term investment decisions in the UK.

The MoC builds upon the foundation of the enhanced global strategic partnership outlined in the Hiroshima Accord of May 2023 and complements existing frameworks such as the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) and both nations’ membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

To mark the occasion, the British Embassy in Tokyo has launched “Expand in Japan” – an initiative to champion and support UK investors seeking opportunities in the Japanese market. Companies can register their interest here (https://survey.zohopublic.com/zs/0MEMsF).

The signing comes as the Minister for Investment Poppy Gustafsson is in Tokyo to meet with key Japanese investors and government partners.

It also follows the UK’s recent National Day celebration at Expo 2025 Osaka, where the UK Pavilion, themed “Come Build the Future,” has been showcasing Britain as a global hub of innovation.

Nearly 1,000 Japanese companies have already established operations in the UK, with £87 billion in investment stock. This new agreement aims to strengthen reciprocal investment flows, supporting both nations’ economic growth and security objectives.

Richard Lyle, President of the British Chamber of Commerce in Japan, said:

We welcome this close partnership which enables UK companies to invest, innovate, and drive growth in Japan – this is a strong signal of Japan’s openness to high-quality investment. UK companies in Japan already create high-quality jobs across the country, develop deep partnerships, and offer world-leading products, services and solutions to multiple sectors in the market.

We will continue to work with the UK and Japanese governments to enable further UK investment into Japan. As a membership organisation supporting British companies in the Japanese market, we look forward to seeing more companies doing business here.

Martin Kent, His Majesty’s Trade Commissioner for Asia Pacific, said:

This new partnership with the Japanese Government is about turning ambition into action – unlocking opportunities for UK businesses in key sectors aligned with our Industrial Strategy – and building mutual prosperity with Japan. I look forward to the collaboration, innovation, and growth that will emerge following today’s signing.

Notes to Editors:
- The UK-Japan relationship has been strengthened through multiple agreements including the 2023 Hiroshima Accord, a bilateral free trade agreement in 2020, UK’s accession to CPTPP in 2024, and the launch of the Economic 2+2 in 2025.
- This agreement supports both the UK’s Modern Industrial Strategy and Japan’s Program for Promotion of Foreign Direct Investment.
- For further information, please contact: British Embassy Tokyo at xxx@xxx.xx (mailto:xxx@xxx.xx)