APD | Japanese companies hurt by Brexit plan

By APD writer Alice

More than half (54 percent) of Japanese companies operating in the United Kingdom have been hurt by the country's planned exit from the European Union (Brexit), according to a recent survey by the Japan External Trade Organization.

It represented an increase of 28.7 percentage points from a year ago.

The survey, conducted from September 10 to October 8, also showed that a whopping 70.8 percent of Japanese manufacturers in the UK have been negatively impacted as Prime Minister Boris Johnson is pushing ahead with his plan to pull out of the 28-nation bloc by the end of January.

The respondents said they were affected by reduced sales and increasing costs related to the need to build up inventories in anticipation of confusion in logistics and customs arrangements when Brexit comes effect.

They said they have curbed investment because their clients consider relocating operations outside the UK.

About 57.7 percent of Japanese companies in the UK said they have drawn up measures in preparation for a no-deal Brexit, including shifting logistics routes due to likely changes to customs union arrangements.

Across Europe as a whole, 31.0 percent of Japanese companies said they have been negatively impacted by Brexit, up 14.9 points, while 53.1 percent said they saw no impact, down 10.3 points.

The survey covered 979 Japanese companies operating in Europe, of which 842, or 86 percent, responded.

(ASIA PACIFIC DAILY)