Sources confirm that the UK government has inked an £18 billion investment pact with Japan, a move that officials are touting as proof that leaving the EU has unlocked new commercial frontiers. But behind the polished press releases, there are questions about who really benefits and whose pockets get lined.
The deal, signed in Tokyo by trade secretary Anne-Marie Trevelyan and her Japanese counterpart, promises thousands of British jobs and a boost in sectors from financial services to renewable energy. It's the latest in a series of post-Brexit bilateral agreements designed to show that Britain can strike lucrative trade partnerships outside the bloc's umbrella.
However, digging through the small print reveals that this isn't all new money. A significant portion of the investment that has been announced is actually the repackaging of existing commitments. Government documents show that £6 billion of the total comes from projects that were already in the pipeline before the deal was even mooted. Hardly evidence of a fresh wave of capital.
Then there are the tax breaks. The UK has offered Japanese investors a sweetheart deal: reduced withholding tax on dividends and interest payments, and exemptions on capital gains. Critics say this is a giveaway to corporations that will cost the public purse hundreds of millions each year. The Treasury has not published any impact assessment of these tax concessions, which raises the question of what they are trying to hide.
Meanwhile, the deal's enforcement mechanisms are worryingly weak. There is no provision for binding arbitration if a Japanese company feels the UK has broken the terms. Instead, disputes will be handled through a consultative committee, a body that has no real teeth. Past experience shows that such committees can drag on for years without resolution.
Unaccountable power is the real story here. The deal was concluded behind closed doors, with minimal parliamentary scrutiny. Select committees were handed a short briefing days before the signing and given no chance to influence the text. This is a pattern that has become all too familiar since 2016, where trade policy is crafted in secrecy and then presented as a fait accompli.
Japan itself is not without its own corporate scandals. The conglomerates that stand to benefit most from this deal have histories of labour exploitation and environmental violations. The UK's trade watchdogs have no remit to investigate these practices, meaning that our markets could become a conduit for dodgy dealings.
And do not forget the bodies. The rise in trade has a dark side: more shipping means more emissions, more waste, and more pressure on ports where safety standards are often ignored. The government's own projections predict a 12% increase in carbon emissions from freight as a result of heightened Japan-UK trade. That is not something they will mention in the official statements.
So yes, this deal is a victory lap for Brexiters. But for the rest of us, it looks like another case of corporate welfare dressed up as national success. The real winners are the well-connected executives and the politicians who will leave their posts for lucrative board seats. The rest of us get the bill.
Sources inside the Department for Trade suggest that officials are already planning similar deals with Australia, New Zealand and possibly India. They should expect the same lack of transparency, the same giveaway tax policies, and the same hollow promises about jobs. The pattern is set.
Until we start demanding accountability and real scrutiny, these deals will continue to serve the few at the expense of the many. That is the story. And it is one that will not go away any time soon.
