Estimated reading time: 2 minutes
The export credit agencies (ECAs) of the United Kingdom and Japan have inked a Memorandum of Understanding (MoU) to bolster their collaborative efforts on global projects. This move aims to facilitate joint ventures that will assist businesses involved in exports.
The MoU between the UK Export Finance (UKEF) and Nippon Export and Investment Insurance (NEXI) outlines updated terms for collaboration. These terms align with the sustainability goals set forth in the Hiroshima Accord, the G7 Partnership for Global Infrastructure Investment (PGII), and the UN Sustainable Development Goals.
The partnership will concentrate on export credit policies and co-investment initiatives. This ongoing collaboration will enhance the global competitiveness of British and Japanese enterprises as they explore international trade opportunities.
The MoU will serve as a roadmap for future joint ventures between the ECAs, particularly in regions like Africa and the Indo-Pacific.
These ventures will leverage British and Japanese supply chains, thereby opening doors for project sponsors globally to benefit from UKEF and NEXI support. This is particularly relevant for projects focused on clean energy, healthcare, water, education, and transport.
The MoU was formalised during the inaugural UK-Japan Strategic Economy Policy and Trade Dialogue. The event took place today in London and was hosted by Secretary of State for Business and Trade Kemi Badenoch and Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura.
The agreement between UKEF and NEXI aims to reinforce the dialogue’s objective of upholding and enhancing the multilateral trading system in a manner that fosters sustainable, inclusive, and resilient growth.
Kemi Badenoch, Secretary of State for Business and Trade, said, “Today’s dialogue and new agreement mark an exciting new chapter in UK-Japan cooperation, showing how our innovative economies complement each other.
“We’ve signed up to CPTPP and already have a bespoke trade deal with Japan, but through these new talks we can now work more closely on cutting-edge tech like clean energy to ensure that our businesses stay competitive on the global stage.”
With UKEF having pioneered ECA support for Ukraine since 2021 – backing the reconstruction of bridges around Kyiv and planning to ensure the country’s continuity of nuclear energy supplies – the agreement also outlines the agencies’ intention to share expertise which could support bilateral and multilateral efforts to reconstruct Ukraine.
This recent milestone celebrates nearly 20 years of collaboration between these governmental bodies, who first signed an MoU in 1995 and have maintained a strong relationship through their mutual G7 membership.
