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London
CNN business
—
Japan’s richest man has warned that Brexit is “virtually impossible” and could return Britain to the economic stagnation of the 1970s, when it was often called “the sick man of Europe”.
Billionaire Tadashi Yanai, founder and CEO of Fast Retailing (FRCOF), said Britain has long benefited from an open economy. Brexit will change that and many talented people will look elsewhere for work, he said.
Leaving the European Union is a major challenge, due to the need to maintain an open border between Ireland (an EU member state) and Northern Ireland (part of the UK), as well as calls for Scottish independence. Brings Voted against Brexit in the 2016 referendum.
“I think Brexit is virtually impossible because the old borders are destabilized and the UK has problems with Northern Ireland and Scotland,” Yanai told CNN Business. “Therefore, I think Brexit will be difficult for the UK to achieve even if it wants to.”
“Brexit could put Britain back in the pre-Margaret Thatcher era of Europe’s sick man. I fear it will happen again.”
Former Prime Minister Thatcher won elections for the first time in 1979, after years of low growth, high inflation and unemployment in the UK economy. In the 1980s, Thatcher-backed Japanese companies began to see Britain as the gateway to Europe, investing heavily in car assembly plants, banking and other businesses.
Fast Retailing, the global apparel empire that owns Uniqlo, opened its first store outside of Japan in London 18 years ago. Since then it has expanded to all major markets around the world. According to Bloomberg, Fast Retailing posted sales of 2.13 trillion yen ($19.2 billion) in 2018, and Yanai is worth about $30 billion.
His warning about Brexit echoed concerns expressed by other Japanese officials about Britain’s future relationship with the European Union and the readiness of Britain to leave the EU by 31 October. ing.
If the UK leaves without a trade protection deal, goods manufactured in the UK, including cars made by Japanese companies, will face tariffs and other barriers to entry into the EU market. .
Together, Nissan (NSANF), Toyota (TM) and Honda (HMC) produce about half of the cars built in the UK, most of which are sold in Europe. They have already scaled back their presence in the UK due to weak sales and uncertainty over future relationships with their largest and closest trading partners.
Honda has announced it will close its Swindon plant in 2022, and Nissan has abandoned plans to build X-Trail models in the northern city of Sunderland. Nissan is also moving production of other luxury cars out of the country.
Earlier this month, Toyota said it would suspend production at its Derbyshire plant on November 1, in anticipation of possible disruptions at British ports that could affect parts supply. said.
Speaking about Uniqlo, Yanai said his company remains committed to maintaining a long-term presence in the UK despite the economic and political challenges ahead.
He also spoke about his ambition to transform the company into a global leader when it comes to addressing the climate crisis.
“Environmental issues are currently the most important issue in the business world,” he said. “And if we can’t solve this problem, there’s no point in running a business,” he added.
Asked if it would be possible for Fast Retailing to achieve net zero carbon emissions, Yanai said: And we have to hurry to do it.Otherwise the environment on earth would be [in] imminent danger. ”
Ms. Yanai, 70, started talking about wanting a woman to take over as her successor.
“Women leaders tend to be more talented individuals, and women leaders are better suited to the apparel retail industry. We expect to see more women leaders emerge in business management,” he told CNN Business. told to Women are better able to adapt when entering global markets. ”
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