The reality starts to bite;
An official Japanese government task force on Brexit, has collated views of big Japanese companies from car companies to banks and pharmaceutical companies that invest in the UK.
It has produced a 15-page list titled "Japan's message to the UK and the EU", detailing requirements from Brexit negotiations.
It lists the consequences if the requirements are not delivered.Half of Japanese investment in the EU comes to the UK including companies such as Nissan, Honda, Mitsubishi, Nomura and Daiwa.
"Japanese businesses with their European headquarters in the UK may decide to transfer their head-office function to Continental Europe if EU laws cease to be applicable in the UK after its withdrawal," the report concludes.
It says: "In light of the fact that a number of Japanese businesses, invited by the Government in some cases, have invested actively to the UK, which was seen to be a gateway to Europe, and have established value-chains across Europe, we strongly request that the UK will consider this fact seriously and respond in a responsible manner to minimise any harmful effects on these businesses."
"Brexit would make such products unable to meet the rules of origin as EU products, which means that Japanese companies operating in the EU would not be able to enjoy the benefit of the Free Trade Areas concluded by the EU," the report said.
It also calls on the UK to "maintain access to workers who are nationals of the UK or the EU", saying the European labour market could suffer "great turmoil" if EU nationals could not freely travel between and stay in the UK and continental Europe.
The Japanese government warns its banks will move their European HQs out of London if the Brexit negotiations fail to secure the financial services passport to operate in the EU.
"If Japanese financial institutions are unable to maintain the single passport obtained in the UK, they would face difficulties in their business operations in the EU and might have to acquire corporate status within the EU anew and obtain the passport again, or to relocate their operations from the UK to existing establishments in the EU," said the report.
This concern has already been noted by the Bank of England, but this is the strongest indication yet of other nations spelling out the implications of some types of Brexit.
Those impacts also will be felt in the pharmaceutical industry, says the report, which sees the location of the EU's European Medicines Agency in London as crucial to the UK's high tech research appeal.
"Many Japanese pharmaceutical companies are operating in London, due to the EMA's location in London.
"If the EMA were to transfer to other EU Member States, the appeal of London as an environment for the development of pharmaceuticals would be lost, which could possibly lead to a shift in the flow of R&D funds and personnel to Continental Europe.
"This could force Japanese companies to reconsider their business activities," says the report.https://news.sky.com/story/japans-unpre ... t-10564585