Revealed: How Brexit will damage the UK's relations with Japan

'Ministers are guilty of magical thinking on trade,' MP says

In the soup? May has been toasting to future success during her visit, but critics claim trouble lies ahead (Getty)

The Government has been accused of glossing over the damage Brexit could do to relations with Japan after it emerged that Britain could come out of more than a dozen deals on leaving the EU.

Crucial agreements with Japan on issues such as nuclear power, customs breaches and cutting red tape for businesses could be lost when Britain leaves the EU, research by the Open Britain campaign has shown.

It comes as Theresa May flew to Kyoto to boost future trade relations after Brexit and to reassure Japanese companies about Britain’s future outside the bloc.

However, Labour MP Alison McGovern accused ministers of focusing on “imaginary trade deals” rather than shoring up existing agreements as it emerged that Britain could come out of 13 bilateral agreements between Japan and the EU.

Ms McGovern, a supporter of Open Britain's campaign for a soft Brexit, said: “Theresa May and Liam Fox tell us that they are going to Japan to discuss a new trade deal.

“But with the Japanese reportedly not keen, they would be better concentrating on how making sure we retain the agreements we already have.

“Sectors from the nuclear industry to our pharmaceutical companies will lose out from Brexit if these arrangements are not replicated immediately after we leave the EU.

“Ministers are guilty of magical thinking on trade.

“They continually talk up imaginary future deals of which we have seen no sign when they should get real and focus on nailing down existing agreements which benefit the British economy.”

Japan has made repeated pleas for clarity on the impact of Brexit and emerged as a vocal advocate of Britain staying within the European Union.

The Asian nation is one of the UK’s most important trading partners, as some 879 Japanese companies employ 142,000 staff in the UK.

Japan has also made significant investment in The City, with its banks treating London as a financial gateway to the rest of Europe.

On the first day of talks, Mrs May met with business leaders and attended a private dinner with Japanese counterpart Shinzo Abe at the State Guest House, Kyoto.

She told Mr Abe that Britain stands "shoulder to shoulder" with Japan in the face of an increased threat from North Korea, and the leaders were expected to explore the possibility of fresh sanctions against Pyongyang on Thursday.

The Prime Minister has also urged China to step up its action against North Korea and refused to rule out British military action to stop its illegal weapons testing programme.

She was accompanied by International Trade Secretary Liam Fox and a 15-strong delegation of UK business leaders for the three-day visit.

Aston Martin boss Andy Palmer used the trip to announce plans for £500 million of trade with Japan, which will safeguard jobs at the firm's plants in the West Midlands and South Wales.

A Department for International Trade spokesman said: “As an international economic department, we will aim to ensure commercial certainty for Japanese and UK businesses by working to secure continuity of existing agreements as we exit the EU.

“It’s important that we build upon our already strong trade relationships with global partners like Japan, and it is our intention that we will lay the ground work for an ambitious trade deal based on the EU-Japan agreement.”