Key sectors identified for expanded investment include clean energy, digital transformation, biotechnology, and healthcar
The United Kingdom (U.K.) and Japan have signed a landmark Memorandum of Cooperation (MoC) aimed at boosting U.K. investment in Japan and reinforcing the strategic economic partnership between the two nations.
The agreement was formalized at the British Embassy in Tokyo by U.K. Minister for Investment – Baroness Poppy Gustafsson of Chesterton CBE and State Minister of the Cabinet Office of Japan – Mr. Seto Takakazu, who was instrumental in compiling ‘Program for Promotion of Foreign Direct Investment in Japan 2025’.
The MoC sets out a formal framework to accelerate UK investment into Japan, aligned with the Prime Minister of Japan – Shigeru Ishiba’s bold target of more than doubling the country’s foreign direct investment stock to JPY 120 trillion (approximately £ 600 billion) by 2030.
Speaking on the occasion, Baroness Poppy Gustafsson CBE said, “The UK and Japan share a deep and enduring partnership that is committed to mutual prosperity and growth. That’s why I’m delighted to sign this new partnership with Japan – capitalising on the major opportunities for UK businesses to bring their innovative offers to Japan and grow in the Japanese economy.”
Key sectors identified for expanded investment include clean energy, digital transformation, biotechnology, and healthcare, along with critical enabling industries such as legal, professional, and financial services.
The agreement is in line with the U.K.’s new Industrial Strategy, which outlines a long-term vision to develop high-growth industries including clean energy, life sciences, and advanced digital technologies. By supporting predictability and collaboration, the strategy aims to enable sustainable investment decisions from U.K. companies abroad and attract reciprocal investment at home.
The MoC builds upon the foundation of the enhanced global strategic partnership outlined in the Hiroshima Accord of May 2023 and complements existing frameworks such as the U.K.-Japan Comprehensive Economic Partnership Agreement (CEPA) and both nations’ membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
To support the implementation of the MoC, the British Embassy in Tokyo launched the “Expand in Japan” initiative, which will provide guidance and support for U.K. businesses seeking opportunities in the Japanese market.
The signing comes as Baroness Poppy Gustafsson CBE is in Tokyo to meet with key Japanese investors and Government partners. Her visit follows the U.K.’s recent National Day celebration at Expo 2025 Osaka, where the U.K. Pavilion, themed “Come Build the Future”, showcased British innovation and global ambition.
Currently, nearly 1,000 Japanese companies operate in the UK, representing £87 billion in investment stock. The new agreement is seen as a vital step in enhancing reciprocal flows of capital and expertise, further supporting both countries’ long-term growth and security goals.
