POST Online Media Lite Edition



 

Japanese companies may leave UK over Brexit

Staff Writer |
Japan has warned that the UK's planned exit from the European Union (EU) could drive Japanese companies out of the country.

Article continues below






Many Japanese corporations have invested heavily in the UK, including global banking giant Nomura and automakers Toyota, Nissan and Honda, CNN Money said in the report.

In a 15-page memo made public during the G20 summit in China, Japan laid out its companies' demands for how the UK handles its Brexit from the EU.

Japanese firms saw the UK as "a gateway to Europe" when they invested there and now want reassurances that the country will seek to limit any "harmful effects" on their businesses, CNN Money reported citing the memo as saying.

Those with European headquarters in the UK may move those functions elsewhere in Europe "if EU laws cease to be applicable in Britain after its withdrawal," the memo warned.

Car makers, which often source auto parts from other parts of the EU for vehicles assembled in the UK, fear Brexit could add costs and delays to their European operations through customs duties at the border.


What to read next

German companies will scale back investment if Britain leaves EU
54% of European businesses see Brexit as threat to European business community
Thanks to Brexit, global growth will be dampened