by Hugo Dixon
"What may surprise Davis – and other Brexiteers – is that Japan is not just, or even mainly, concerned about tariffs. Last week, the Brexit secretary said he would try to negotiate tariff-free access to the single market – as if that would be enough to secure our prosperity.
But look at what Tokyo wants: EU workers to continue to be able to come here; financial services firms to keep their “passport”; freedom to provide other services across borders; our regulations to stay harmonised with the EU’s; the UK to remain a centre for clearing euros; the European Medicines Agency (EMA) to stay here; us to keep access to the EU’s research budget; and a host of other things.
All of these are part and parcel of the single market. Without them, our ability to trade and attract investment will be diminished – especially in services which make up 80% of our economy and which are not affected by tariffs."