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Full Breakdown

UK-Japan £18bn Pact Signed

6/14/2026, 4:48:49 AM

Background

The agreement follows the UK’s post-Brexit push to broaden trade beyond the EU and cement its security partnership with Japan, a relationship valued at roughly £140 billion. Announcing the pact before the G7 summit in Évian-les-Bains signals a joint emphasis on clean energy and defence.

Deal Details

Impact

The offshore-wind investment will add 5.9 GW of capacity, cut reliance on fossil fuels and create jobs. The technology pact aims to make the UK a hub for AI, quantum and semiconductor development, while the defence component supports the Global Combat Air Programme.

Official Statements

Starmer called the agreements “landmark” and said they will bring multibillion-pound investment, create tens of thousands of jobs and harness British and Japanese research for growth and security. The government framed the pact as a vote of confidence in the economy and a step toward security cooperation.

Criticism & Opposition

The pact was announced after Defence Secretary John Healey and armed forces minister Al Carns resigned, sparking a challenge from Labour’s Andy Burnham. Trade Secretary Lord Lilley warned the EU-reset could over-regulate firms, and Burnham warned UK politics risk becoming “polarised, poisonous”.

Conflicts & Gaps

All sources cite the £18 billion total, but they differ on the split between offshore-wind and other infrastructure. No source provides a timeline for the Global Combat Air Programme or a precise job-creation figure beyond the “tens of thousands” estimate.

Verbatim Quotes

  • “The PM said: “These landmark agreements will bring multibillion-pound investment into the UK, creating tens of thousands of new jobs and driving new developments.” — Keir Starmer, Prime Minister
  • “Over our 28-year membership British goods exports to the EU grew less than one per cent a year, while our exports to countries we had no trade deal with grew four times as much—by 87 per cent,” — Lord Lilley, Trade Secretary
  • “He told the audience: “It doesn’t feel that we’re heading in the right direction.” — Andy Burnham, Labour challenger

What's Next

Starmer and Takaichi will meet again at the G7 summit, where they are expected to reaffirm a commitment to the Global Combat Air Programme and sign an international contract by month-end.