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8 September 2016Asia

Japan issues post-Brexit R&D warning to UK

Japan’s government officials have warned the UK that the Asian country may reconsider its research and development (R&D) activities in the UK following Brexit.

In a 15-paged letter, Japan made it clear that the uncertainty post-Brexit is a major economic concern.

In the letter, the Ministry of Foreign Affairs  put forth requests on behalf of the pharmaceutical industry.

It requested that the UK maintain its access to the EU budget for R&D and its participation in the Japan-EU joint research project.

Japan also requested that the current location of the European Medicines Agency (EMA) remains in London and that the UK maintains or establishes an equivalent framework for regulations and certifications standards in fields such as chemicals, medicines and medicinal products, among others.

The letter stated: “Japanese companies are concerned about the relocation of EU agencies currently located within the UK. Many Japanese pharmaceutical companies are operating in London, due to the EMA’s location in London.”

It added: “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.”

The EMA told LSIPR: “The implications of the UK referendum for the seat and operations of EMA depend on the future relationship between the UK and the EU. This is unknown at present and therefore we will not engage in any speculation.”

It added: “Some member states have already expressed an interest to host EMA. As we said in our  statement published on July 6, 2016, we welcome this interest from across the EU. However, any decision on a relocation of the agency is not taken by EMA, but is decided by common agreement among EU member states. No such decision has been taken.”

Alasdair Poore, head of Mills & Reeve’s intellectual property team, said: “There are clear advantages for all parties in the UK remaining within or affiliated to the EMA system. There are likely to be some legal issues as to how this can be done.”

He added: “Being part of the EMA system shares workload more widely across EU countries;  provides access for the new EU to UK technical resources which will unquestionably be valuable in some areas; provides the UK with access to EU resources which will undoubtedly likewise be valuable; and provides an assurance of mutual exchange of information.”

Poore explained that unless close cooperation is negotiated, it is very likely that the office of the EMA would leave the UK.