The increasing reliance on specialized trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) reveals a profound reorientation of global trade patterns. Historically, trade agreements focused primarily on reducing tariffs on large-scale industrial goods. Today, a significant proportion of trade involves specialized products and services, often requiring complex regulatory compliance and logistical support. This trend underscores the growing importance of “deep trade agreements” – those encompassing not just tariffs but also intellectual property protection, investment rules, and dispute resolution mechanisms. The ability of a small business like Nana Lily’s to capitalize on these agreements exemplifies the potential for diversification, yet simultaneously exposes vulnerabilities within a globalized system.
Historically, the UK’s relationship with Japan dates back to the Meiji Restoration in the late 19th century, characterized by significant trade and diplomatic exchanges. The Treaty of London in 1858 established the first formal trade relations, primarily focused on British manufactured goods. Post-World War II, economic cooperation intensified, culminating in the signing of the CEPA in 2021 and the subsequent UK accession to the CPTPP in 2023. “The UK-Japan CEPA is a critical pillar of our trade strategy,” stated the UK’s Minister for Trade and Export Promotion, Conor Cunningham, in a recent statement. “It unlocks access to a significant and dynamic market, and supports UK businesses looking to expand their horizons.” This commitment reflects a broader shift in the UK’s foreign policy, prioritizing economic partnerships and leveraging trade as a tool for geopolitical influence.
Key Stakeholders: The landscape involves several interconnected actors. The UK government, through initiatives like the Department for International Trade, plays a crucial role in negotiating and administering trade agreements. Japanese businesses, represented by organizations like the Japan External Trade Organization (JETRO), drive demand and investment. Smaller businesses, exemplified by Nana Lily’s, benefit from reduced trade barriers and access to new markets. Furthermore, the World Trade Organization (WTO) continues to shape the rules of international trade, although its effectiveness in resolving disputes and promoting fair trade has come under scrutiny in recent years. According to a recent report by the Peterson Institute for International Economics, “The WTO’s dispute resolution mechanism is increasingly ineffective, leaving trade disputes unresolved and undermining the stability of the global trading system.”
Data illustrating the economic impact of these agreements provides context. In 2024, UK exports to Japan increased by nearly 9% to £16 billion, a significant surge compared to previous years. Simultaneously, Japanese investment in the UK has more than doubled over the last decade, injecting vital capital into sectors ranging from financial services to advanced manufacturing. “The doubling of Japanese investment demonstrates a growing confidence in the UK’s economic stability and innovation ecosystem,” noted Professor Alan Walters, a specialist in international economics at King’s College London. “This trend is inextricably linked to the improved trade relationship and the reduced regulatory hurdles.”
Recent developments over the past six months reinforce the trend. The UK and Japan held their inaugural Economic 2+2 dialogue in March 2025, signaling a deeper commitment to cooperation beyond trade. Furthermore, the UK’s continued expansion within the CPTPP demonstrates a strategic long-term investment, aligning with broader efforts to strengthen alliances in the Indo-Pacific region. However, challenges remain. Concerns surrounding the uneven distribution of benefits within the UK economy – with London and the South East disproportionately benefiting from trade deals – persist, necessitating targeted support for regional businesses and infrastructure development.
Looking Ahead: Short-term (next 6 months), we can anticipate continued growth in UK exports to Japan, driven by seasonal demand for Christmas products and the ongoing expansion of Nana Lily’s distribution network. Long-term (5-10 years), the success of this trade relationship will be a bellwether for the UK’s broader trade strategy. The ability to successfully navigate the complexities of the CPTPP and maintain a stable relationship with Japan will be crucial for attracting further investment and securing access to key markets. Moreover, the evolving geopolitical landscape – including ongoing tensions in the Indo-Pacific and the rise of new economic powers – will undoubtedly shape the future of UK-Japan trade.
The story of Nana Lily’s is not merely about a successful business expansion; it is a reflection of a broader transformation in global trade. The pudding protocol, as it has come to be known, compels a critical examination: are existing trade agreements truly serving the interests of smaller nations, or do they primarily benefit larger economies and established players? The answers to these questions will be vital in shaping the future of global commerce and determining whether the promise of free trade truly translates into shared prosperity, or simply reinforces existing inequalities. We must continue this dialogue.