The United Kingdom and Japan have signed a Memorandum of Cooperation (MoC) to enhance bilateral investment, aiming to significantly increase UK investment into Japan. The agreement was formalized at the British Embassy in Tokyo by UK Minister for Investment, Baroness Poppy Gustafsson of Chesterton CBE, and Mr. Seto Takakazu, State Minister of the Cabinet Office of Japan. This initiative supports Japan’s strategic goal of more than doubling its foreign direct investment stock to JPY120 trillion (approximately £600 billion) by 2030.
The MoC sets up a formal framework for cooperation between the two countries, designed to unlock investment opportunities and deepen economic ties. It focuses on high-growth sectors such as clean energy, digital transformation, biotechnology, and healthcare, while also promoting enabling sectors like legal, professional, and financial services. These areas of focus align closely with the UK’s new Industrial Strategy, which outlines a long-term vision for innovation and sectoral transformation across the British economy.
This partnership builds on previous bilateral agreements, including the Hiroshima Accord (May 2023), the UK-Japan Comprehensive Economic Partnership Agreement (CEPA), and both countries’ participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Together, these frameworks enhance economic cooperation and investment flows between the two nations.
To support the new agreement, the British Embassy in Tokyo has launched the “Expand in Japan” initiative, which will provide resources and guidance to UK businesses seeking to enter or grow in the Japanese market. The signing also coincided with Minister Gustafsson’s visit to Tokyo, where she met with key Japanese investors and government officials to strengthen economic cooperation.
The announcement follows the UK’s participation in Expo 2025 Osaka, where its National Day celebration and UK Pavilion, themed “Come Build the Future,” showcased the UK’s global leadership in innovation. The pavilion highlights the country’s strengths in science, technology, and creative industries.
Currently, nearly 1,000 Japanese companies operate in the UK, contributing £87 billion in investment stock. This new agreement aims to enhance reciprocal investment flows, supporting shared goals in economic development, innovation, and security.
Business leaders welcomed the agreement. Richard Lyle, President of the British Chamber of Commerce in Japan, emphasized the importance of this partnership in creating jobs, developing deep business relationships, and offering world-leading solutions. Martin Kent, His Majesty’s Trade Commissioner for Asia Pacific, highlighted the MoC as a step toward turning strategic ambitions into actionable outcomes that will drive mutual prosperity in line with the UK’s long-term industrial goals.
