Brexit: Japanese companies 'have already started receiving offers to relocate elsewhere in the EU’

The warning comes as Business Secretary Greg Clark is still resisting calls to publish a letter he wrote to Nissan to persuade them to stay in the UK

Nissan, the Japanese carmaker, has decided that it will build its next Qashqai SUV in Sunderland in one of the first major investment decisions in the car industry since Brexit (Owen Humphreys/PA)

One of Japan’s leading businessmen has warned Britain that Japanese companies have already begun receiving offers to relocate elsewhere in the EU and are contemplating postponing investment decisions following the UK’s decision to leave the EU.

Haruki Hayashi, president of the Japanese Chamber of Commerce in the UK and chief executive of Mitsubishi in the EU, urged Britain to give more than “general reassurances” to Japanese firms or risk putting investment decisions at risk.

His warning came after Business Secretary Greg Clark resisted calls to reveal the details of the Government’s agreements with the Japanese car giant Nissan following last week's announcement that the company will build two new models at its plant in Sunderland, securing the future of 7,000 jobs.

Speaking to MPs at a reception in London, including the Brexit Secretary David Davis, Mr Hayashi said the uncertainty that has risen after the Brexit vote, including the slump in the value of the pound and the possibility of being restricted from the EU’s single market, is a major concern for Japan.

Hayashi was quoted saying: “Some examples of areas of concern for Japanese companies include validity of the single passport system, the free movement of skilled workers between the UK and different parts of Europe, and whether the continuation of the current environment of uncertainty will lead the Japanese companies to postpone further investment decisions.”

He emphasised that Japanese businesses had come to Britain looking for a gateway to Europe.

David Davis sought to reassure the investors present at the reception saying the UK will be “a beacon of free trade”, adding that May’s government intends to negotiate for a “comprehensive trading” agreement with the EU.

In September, a Japanese government taskforce already delivered a warning to the UK in a 15-page document titled Japan’s Message to the United Kingdom and the European Union.

The document made it clear that Japanese companies want clarity about the UK’s negotiations with the EU.

“Uncertainty is a major concern for an economy; it evokes a sense of anxiety, causing volatility in markets, and results in the contraction of trade, investment and credit,” the report’s authors wrote.

“What Japanese businesses in Europe most wish to avoid is the situation in which that they are unable to discern clearly the way the Brexit negotiations are going, only grasping the whole picture at the last minute.”

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