Japan business warning to UK over Brexit fallout

Japan's government has issued a stark warning about the Brexit impact on Japenese firms in the UK.

The Toyko government has issued a list of demands aimed at protecting the country's car manufacturers, financial institutions and jobs of Britons working for their firms.

Based on requests from Japanese firms, Theresa May's government was urged to behave in a "responsible manner" in the 15-page document.

The report also urged negotiations between the UK and EU to be carried out as quickly as possible.

"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", the report said.

The document also warned that head offices of Japanese firms in the UK could be shifted to the continent if EU regulations no longer apply after Brexit.

"The Japanese business community hopes to see the UK implement measures to promote investment including the easing of regulations to make the UK a more attractive investment destination," it continued.

"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".

It added: "It is imperative for the UK and the EU to regain the confidence of the world and ensure their unwavering competitiveness by increasing the predictability of the Brexit process, ensuring the outcome is free of unpleasant surprises and reducing the risks emanating from uncertainty".

Car manufacturers Honda, Nissan and Toyota all have major manufacturing bases in the UK.

Mrs May is expected to have a brief meeting with Japanese leader Shinzo Abe at the G20 summit on Monday.