Abe cautions against Brexit regulation cliff edge

Japanese Prime Minister Shinzo Abe called on his British counterpart Theresa May to ensure a smooth transition for business as the UK leaves the EU, to avoid a cliff edge where rules and regulations for firms change overnight.
A day after talks with May at her country residence at Chequers outside London, the leader of the world’s third-largest economy made clear his concerns over Brexit while also underlining his long-term commitment to the UK.
Japanese companies including Nissan and Hitachi have invested more than £40 billion ($52 billion) in the UK. Japanese companies employ a total of 140,000 people in the country.
“When the UK leaves the EU, if the rules change overnight, there will be a concern about a possible confusion arising,” Abe told reporters in London.
Abe added that he wanted the UK to prioritize “a smooth and transparent process including setting a transition period.”
The outcome of the Brexit negotiations will shape the future of Britain’s $2.6 trillion economy, the world’s fifth-biggest, and determine whether London can keep its place as one of the top two global financial centers.
Since the shock June 23 Brexit vote, Japan has expressed unusually strong public concerns about the impact of Brexit on the UK, the second most important destination for Japanese investment after the US.
“Japan supports a strong UK and a strong Europe,” Abe said. “It is necessary that the firm solidarity of Europe as a whole is maintained while ensuring a smooth and successful Brexit,” Abe said.
After talks with Abe on Friday, May said she wanted to ensure “the UK remains the best place in Europe to run and grow a business, whether it is one operating at home or abroad.”
May mentioned SoftBank’s purchase of Britain’s most valuable technology company ARM, Nissan’s commitment to building the new Qashqai model at their plant in Sunderland and Toyota’s £240 million investment in Derby as evidence that Japanese business was confident about Brexit.
May has said she wants a Brexit deal, which will enable Nissan and other automakers to flourish in Britain, and last year the Japanese company said it had received assurances allowing it to increase production at its plant in Sunderland, northeast England.

Source: Arab News