Cameron calls for end to trade barriers

British prime minister David Cameron began a four-day tour of Asia by calling on Japan to end trade restrictions on British companies to open the way for a free-trade agreement with the EU.

“Last year I pushed hard to get backing of fellow EU leaders for work to start scoping out the shape of such an EU-Japan free-trade deal,” he said ahead of a meeting with Japan’s premier Yoshihiko Noda.

“I really hope we can open formal negotiations later this year. But in order to win the argument in the EU, Japan needs to demonstrate its readiness and commitment to non-tariff barriers.”

Cameron led similar delegations to India and China as he seeks new markets for British companies and after leaving Japan he’s scheduled to travel to Indonesia, Malaysia and also Burma, where he set is to become the first Western leader to visit Aung San Suu Kyi since the Nobel Peace Prize laureate was elected to parliament.

The trade effort is part of a plan to make exports an engine for growth for the British economy.

Leaders from companies such as Barclays, BAE Systems, Royal Dutch Shell and Rolls-Royce will form part of the travelling group who will sign deals with Japanese companies valued at £200m (€240m).

Nissan said it will build a new hatchback car at its Sunderland plant, adding 225 jobs. “We want to attract more investment like this,” Mr Cameron said.

Cameron defended the decision to include defence company executives in the business delegation and said he would seek to make the most of Japan’s decision last year to allow its companies to take part in arms-development projects and procure equipment from countries besides the US.

“There are a number of defence manufacturers with us,” he told said. “But as these countries, particularly Japan, that have tended in the past to buy only American equipment are opening up, there are opportunities for people like AgustaWestland, who make helicopters, who are on this plane.”

Among other deals, Mitsubishi will sign an agreement to develop a new generator for wind turbines in Edinburgh and Panasonic will develop fuel-cell research in Cardiff, Downing St said ahead of the trip. Japanese investment in Britain amounts to about £26bn, or a fifth of all Japanese investment in Europe.

The visit may also help shift Cameron’s political fortunes after two weeks of negative headlines following chancellor of the exchequer George Osborne’s annual budget that have seen the Conservative Party trail the opposition in opinion polls.

— Bloomberg