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The U.K. is weeks away from signing its first major trade deal since it left the European in January, according to media reports on Wednesday.
The U.K. has made a breakthrough in talks with Japan and the two countries will sign a free-trade agreement soon.
The U.K. published an outline of its objectives for a trade deal with Japan in May and talks began in June.
Read: UK unveils negotiating objectives for FTA with Japan
Trade Secretary Liz Truss said in June: “We both share a desire to have this agreement in force by the end of the Transition Period, if at all possible. So after commencing today our teams will move quickly to complete negotiations.”
Both sides now expect to sign the deal by September, though this is barring any last minute hitches that could derail the agreement.
A free trade deal with Japan could mark a milestone in the U.K.’s departure process from the European Union and could be an encouraging sign as talks continue with the United States, Australia, New Zealand and others.
In May, the U.K.’s department for international trade (DIT) said a free trade deal with Japan, the U.K.’s fourth largest non-European Union trading partner, could boost the size of the economy by 0.07%.
It also said imports from Japan could increase by 80% while exports to Japan would increase by 21.3%..
The deal could encourage car makers including Aston Martin AML, +12.94% as cars are one of the U.K.’s top exports to Japan, worth around £1.1 billion annually, according to DIT figures.
Read: Brexit Brief: Big business shut out of future trade talks
“Both sides are committed to an ambitious timeline to secure a deal that will enter into force by the end of 2020 if at all possible,” a DIT spokesperson said on Wednesday.
“Our priority is to maintain and enhance the trading relationship between our two countries.”
