A HUGE free trade deal has been signed between the European Union and Japan – creating an open trade zone covering nearly a third of the world’s GDP and some 600 million people.

This is good news for dairy farmers, as dairy produce is one of Europe’s biggest exports to Japan. In return, Europe will see the benefits of importing manufactured tech like Japanese cars.

This new trade liberalisation will lead to greater job security in the EU with a growth in demand for chemicals, clothing, cosmetics and beer to Japan. In return, Japan will receive cheaper cheese such as Parmesan, gouda and cheddar, as well as chocolate and biscuits.

Japan's Minister for Economic Revitalisation, Toshimitsu Motegi, said on Tuesday: "At a time when protectionist measures are gaining steam globally, the signing of the Japan-EU deal today will show the world once again our unwavering political will to promote free trade.”

The question for Britain is whether it will personally reap the benefits of the agreement, given its imminent exit from the EU. Japan’s ambassador for international economic affairs, Yoichi Suzuki, previously said that it was "a very high priority that [the deal] enter force before the end of March 2019,” referring to the date when Britain is set to leave the EU.

If the deal does enter into force before Brexit, it could apply automatically to Britain during a post-March 2019 transition period of around two years, but this is still unclear.

Suzuki also said in Brussels earlier this year that if an EU-Japan deal were in force in the UK during the Brexit transition phase, it would buy Japan more time to establish a separate trade deal with Britain.