As the Trump tariffs rollercoaster continues to hurtle on with no sign of abatement, business owners, especially those who are reliant on US customers, are understandably jittery.\u00a0<\/p>\n
As we covered earlier this year, the tariff saga is negatively impacting<\/a> one in five UK SMEs. With no indication of when this turbulence will end, it\u2019s only natural that business owners will start investigating other potential markets \u2013 and Japan might just be the place to start.<\/p>\n A blossoming trade relationship?<\/p>\n In February, the Government announced it had signed a science and technology deal<\/a> with Japan to facilitate collaboration between ventures in the two countries. The statement on the deal, which focused on life sciences, quantum technology and digital infrastructure, came right after the Prime Minister\u2019s visit to Japan.\u00a0<\/p>\n Science minister, Lord Vallance said that the deal would be a boost to both countries\u2019 economies and could help create more jobs.\u00a0<\/p>\n Other important free-trade legislation that has been signed between the two nations over the past five years includes the 2021 Comprehensive Economic Partnership Agreement (CEPA)<\/a> which means there are no tariffs on the majority of products, and the 2024 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)<\/a>, which was designed to reduce trade friction between the UK, Japan and several other major global economies.<\/p>\n The two nations have also worked to cut down on red tape in other areas, with goods not requiring a statement of origin if they are entering Japan from the UK and below 200,000 yen (just under \u00a31000) in value or entering the UK from Japan and below \u00a31000 in value.\u00a0<\/p>\n Investment is a one-sided tale\u2026 so far<\/p>\n Japan is the world\u2019s fourth largest economy and is pushing hard for more foreign investment. The UK is firmly in its line of vision.\u00a0<\/p>\n The Department for Business and Trade writes<\/a> that the investment each country has been making in the other is growing each year; but that \u201cUK investment into Japan is only around 3% that of Japan into the UK.\u201d<\/p>\n In October, Business Matters reported<\/a> that \u201cJapanese investors have poured almost \u00a3118 million into Greater Manchester over the past year\u2026led by companies such as Astemo, Daikin and Mizkan, which have expanded their presence or established new operations in the area.\u201d It adds that the region now hosts more than 25 Japanese firms.\u00a0<\/p>\n There is now a push for UK ventures to do the same. The two nations have just set up an initiative called \u201cExpand in Japan\u201d<\/a>, for instance, to drive growth and to make it easier for businesses to open trade links \u2013 or even premises \u2013 in Japan.\u00a0<\/p>\n Although aimed at specific sectors \u2013 clean energy, life sciences and digital technology \u2013 and largely a push for investment, the deal reflects a wider desire to strengthen trade links.\u00a0<\/p>\n Other initiatives launched by the Japanese government in recent years include the Tokyo Innovation Base<\/a>, designed to attract international founders with its networking and on-site consultation opportunities.<\/p>\n Japan wants founders and innovators<\/p>\n Perhaps more so than at any point in modern history, Japan is trying to attract talent with international events and by pumping resources into accelerator programmes headed up by world-renowned Japanese corporations.\u00a0<\/p>\n Sifted.eu<\/a> wrote just last week about the burgeoning number of British and European startups attending SusHi Tech Tokyo<\/a>, which it says is now billed as Asia\u2019s largest innovation conference. International collaborations, it seems, are a key tool in the country\u2019s goal to create 20 unicorns by 2035.<\/p>\n However, Japan also has stringent rules for its business manager visas, including a six-fold increase in minimum capital to 30 million yen ($204,000), which came in last August<\/a>.\u00a0<\/p>\n Another crucial stipulation is that at least one person from the venture must be in full-time employment in the country, and you must have physical office space.\u00a0<\/p>\n It\u2019s worth noting, however, that founders can apply for a startup visa<\/a> before this and have between six months and two years before they have to apply for and meet the business manager visa requirements.<\/p>\n A golden opportunity?<\/p>\n