Thank you Michel.

And can I start by adding my compliments to both teams, to yours. They’ve both worked incredibly hard this week. It’s been as ever with an important negotiation quite a high-stress week, in terms of their work. So they deserve our compliments and our thanks.

This week we have had long and detailed discussions across multiple areas and I think it is fair to say, that we have seen some concrete progress. I mean, Michel referred to one, but I think there’s been more than that.

However, as I said at the very start of this week, it is only through flexibility and imagination that we’ll achieve a deal that truly works for both sides.

In some areas we have found this from the Commission’s side, which I welcome, but there remains some way to go.

Talks this week have once again focussed on citizens’ rights, on financial matters, on Northern Ireland and Ireland, and on issues relating to our separation. I’m pleased to say we have engaged in detail on all of those areas.

Now, when I met Michel here on Monday to open this third round of negotiations I set out the need for us to drive forward the technical discussions.

I wanted us to establish the areas where we agree, and work through the areas where we disagree, to ensure that we make further progress on a whole range of issues.

I think we’ve delivered that.

The UK’s approach has been informed by a series of detailed papers – on customs; on Northern Ireland; on goods; on civil judicial cooperation; on data; on enforcement and dispute resolution; and on technical matters regarding our separation, such as ongoing confidentiality obligations.

These papers represent the hard work and detailed thinking that has been going on behind the scenes across Whitehall over the past twelve months.

They offer pragmatic and innovative solutions to issues related to our withdrawal and the future deep and special partnership that we want with the European Union. They do not aim to dictate a single approach, but rather considered options for us to work on.

As I have said all along, issues around our withdrawal and our future relationship are inextricably linked.

Our approach of setting out positions on them both is designed to progress the current negotiations as swiftly as possible.

And I note on what Michel just said on that, and I’ll come back to that in a moment.

And that approach is already bearing fruit.

But beyond the debates around process, and technicalities, at the heart of this process must be a desire to deliver the best outcome for the people and the businesses of the European Union and the United Kingdom.

Citizens Rights

The most obvious area for that is on citizens’ rights which remain a top priority.

This week we have discussed a wide range of issues which will have a significant impact on people’s lives. In particular, both sides have agreed:

To protect the rights of frontier workers.

To cover future social security contributions for those covered by the Withdrawal Agreement.

That we should at least protect existing healthcare rights and arrangements for EU27 citizens in the UK and UK nationals in the EU. The EHIC arrangements.

That is good news for example, for British pensioners in the EU: it means that they will continue to have their health care arrangements protected both where they live and – when they travel to another Member State – to be able to use an EHIC card.

On economic rights, we have secured the right of British citizens in the EU27 to set up and manage a business within their Member State of residence, and of course visa versa.

On mutual recognition of qualifications, we have made progress in protecting the recognition of qualifications for British citizens resident in the EU27 and EU27 citizens in the UK.

For every one of these, of course, in fact every single thing I’ve said, all of these are reciprocal, they work for Brits in the EU and the EU27 in the UK.

To that end, we will shortly be publishing a comparison of the UK-EU-positions.

And we have had further discussions on the governance of the citizens’ rights agreement – and the wider withdrawal agreement. We have shown a willingness to discuss creative solutions in this area and now is the time for the Commission to match it.

Financial Settlement

On the financial settlement – the central point, I think, of Michel’s comments – the Commission has set out its position and we have a duty to our taxpayers to interrogate it rigorously.

At this round we presented our legal analyses. On on-budget issues, on off-budget issues and on the EIB (the European Investment Bank).

It is fair to say, across the piece, we have a very different legal stance. But as we said in the Article 50 letter, the settlement should be in accordance with law and in the spirit of the UK’s continuing partnership with the EU, and I repeat the phrase, in accordance with the law and the spirit of the UK’s continuing partnership with the EU.

Michel and I agreed in the last round, it is clear we won’t be making incremental progress on the final shape of a deal on this in every round, and I think this round demonstrates that.

I think we have succeeded in building mutual understanding, but it is also clear that there are still significant differences to be bridged.

Ireland

On Ireland and Northern Ireland, Michel gave credit to this, our coordinators have met again to build on discussions in July.

We had a good discussion on maintaining the Common Travel Area and on safeguarding the Good Friday Agreement, on the basis of the UK paper.

We think there is a high degree of convergence on these key issues, and we agreed to work up shared principles on the Common Travel Area.

We also agreed to carry out further joint technical work on cross-border co-operation under the Good Friday Agreement.

Separation Issues

On Separation Issues, we have had good discussions on the detail of papers the UK published ahead of the round.

We have reached almost complete agreement on our approach to post-exit privileges and immunities which benefits both the UK and EU to maintain after we leave, and on our mutual approach to confidentiality requirements on shared information post-exit.

On Euratom and other institutional issues we have built upon discussions in July and are well placed to make even more progress in the next round.

We remain committed to making as much progress as possible on those issues that are solely related to our withdrawal, but our discussions this week have exposed yet again that the UK’s approach is substantially more flexible and pragmatic than that of the EU as it avoids unnecessary disruption for businesses and consumers.

We have proposed pragmatic solutions to prevent this disruption and we urge the EU to be more imaginative and flexible in their approach to withdrawal on this point.

However, I remain of the view that on this as with many areas there is an unavoidable overlap between withdrawal and the future and they cannot be neatly compartmentalised.

Conclusion

To conclude the third round of talks have been productive and are an important stepping stone and key building block for discussions to come.

We are peeling away the layers, one by one, working through many issues at speed, and moving towards the core of these important matters.

We have locked in points of agreement and unpicked areas of divergence.

Being dynamic is integral to driving forward these talks at pace and to providing the best outcomes for people and businesses – not just in the UK, but in the EU as well.

Michel referred to the issue of time, the 29th of March 2019 midnight. I’ve said from the beginning of this process, some parts will be turbulent, hard, difficult, and of course, we will see that because there are differences of view that have to be resolved.

But both sides, and this was very apparent this week, both teams aim to be constructive, aim to get an outcome which is to the benefit both of the European Union and of the United Kingdom. That’s the aim of both teams.

So my message to Michel and his team as we turn our heads to the next round of talks is: Let’s continue to work together constructively to put people above process.

As discussions in June, July and again this week have shown – our separation from the European Union and our future relationship is inextricably linked. We can only resolve some of these issues with an eye on how the new partnership between us will work in the future.

This is not about skipping ahead or trying to reopen previous discussions, it is about pragmatically driving the progress we all want to see.

To that end my team will publish further papers in the coming weeks – continuing to set out our ambition for these negotiations, and the new deep and special partnership the UK wants to build with the EU.

I look forward to the next round of talks.

Thank you.

Shinzo Abe, Prime Minister of Japan

I’d like to once again welcome Prime Minister May on her very first visit to Japan. When I visited the United Kingdom in April of this year, she gave me a special welcome by inviting me to the Chequers. As I return a favour, I had the pleasure to invite Prime Minister May to Kyoto and it was a delight that we were able to enjoy tea in a very traditional Omotesenke. And of course, at the Kyoto State Guest House, it’s a very traditionally Japanese architect, unlike here at the Akasaka Guest State House, but we did have a very candid and deep conversation together over dinner.

And in that sense, I very much was delighted that we were able to have a very candid conversation about the regional issues together. At a time of change and unpredictability, I put great and ever more importance with the United Kingdom as a global strategic partner that shares fundamental values such as freedom, democracy, respect for human rights and the rule of law.

I also would like to offer my respect to Prime Minister May’s leadership as she steers her country towards the departure from the European Union. Taking the opportunity of, Theresa, your visit to Japan, I hope to make it a huge step forward to elevate our relationship to a new level and would like to work hand in hand with you to robustly develop our bilateral ties between Japan and the United Kingdom.

Theresa May, UK Prime Minister

Thank you, thank you very much, and I am delighted to be able to be here in Japan, and I would like to thank you for the welcome that you have given me. And I was particularly pleased on, as you say, my first visit to Japan, to be able to sample some traditional Japanese culture, as well as some very productive meetings.

As you say, this is an important time for the United Kingdom as we are preparing and negotiating for our exit from the European Union. And as we do so, we are looking to enhance our partnerships, our ties and our links with countries around the world with whom we have had good longstanding relationships, but with whom we can build further cooperation in the future, and Japan is a key country for the United Kingdom. And we already have good cooperation and partnerships in investment between our two countries, with – between businesses, and the Business Forum today was a very good opportunity for further links to be made.

And there will be further work for us to do on enhancing our trade relationship, but also in security and defence, as we both see the same challenges and threats around the world. And as two nations, island nations, that believe in the rule of law, in the rules-based international order, and have the same values, I believe it is important that we work together. And I look forward to our further discussions.

The Prime Minister will be accompanied by a delegation of business leaders on her trip to Japan. The visit will focus on defence and security cooperation, and trade and investment opportunities.

The business delegation will showcase the strength of British business, the shared confidence in the UK-Japan economic relationship as we leave the EU, and the potential for future growth.

Thursday 31 August: Tokyo

Wednesday 30 August: arrival in Kyoto

The Prime Minister visits Japan – Day 1

Thank you, Prime Minister Abe, for welcoming me to Kyoto and here to Tokyo.

The close cooperation between our two countries is particularly important at this critical juncture, with North Korean provocation presenting an unprecedented threat to international security.

I want to begin by expressing the UK’s strong sense of solidarity with the Japanese people at this time.

The UK and Japan are natural partners. We share common interests as outward-looking, democratic, free-trading island nations with global reach.

We are committed to the rules-based international system, free and open international trade and the fundamental values of freedom, democracy, human rights and the rule of law.

And today we have committed to elevating the UK-Japan partnership in a number of areas.

Security and Defence Cooperation

As two outward-facing countries with many shared priorities and shared challenges, Japan is a natural partner for us on defence and security issues. We are each other’s closest security partners in Asia and Europe.

And today we have agreed a “Joint Declaration on Security Cooperation” to enhance our collective response to threats to the international order and to global peace and security, through increased cooperation on defence, foreign policy, cyber security, and counter-terrorism.

Our defence cooperation is already particularly strong, with our Typhoon fighter jets exercising in Japan last year – the first time that a country other than the US has done so.

And we are now taking this even further with the deployment of HMS Argyll to the region in December 2018, and UK troops exercising jointly with their Japanese counterparts next year in Japan for the first time ever.

And we must also tackle new and emerging threats together, from counter-terrorism through to cyber security. And today we have agreed a new programme of cooperation to ensure a safe and secure Rugby World Cup and Olympic and Paralympic Games here in Japan.

We have highlighted our opposition to any actions on the South and East China Seas likely to increase tension. Stability in this region is of global concern and we encourage all parties to resolve their disputes peacefully and in accordance with international law.

Of course, I am here at a critical time. North Korea’s missile launch this week was an outrageous provocation and an unacceptable threat to Japan’s national security. We condemn North Korea in the strongest terms possible for this reckless act, which was a clear violation of United Nations Security Council Resolutions.

In response to this illegal action, Prime Minister Abe and I have agreed to work together and with others in the international community to strengthen pressure against North Korea, including by increasing the pace of sanctions implementation and working towards the adoption of a new and effective resolution at the United Nations Security Council.

Trade and Investment Relationship

Japan is also a natural partner for the UK on the economy: in building a rules-based international system, and encouraging WTO reform to ensure a global economy that works for everyone.

Japan is the world’s third largest economy and we benefit more from Japanese investment than any other country in the world apart from the US.

Japanese companies already invest more than £40 billion in the UK and over 1,000 Japanese companies including Honda, Hitachi, Fujitsu and Sony employ 140,000 people in the UK.

And we welcome the commitment from Japanese companies to a long-term presence in the UK. Nissan, Toyota and Softbank in particular have made commitments to the UK since the EU referendum, in a powerful vote of confidence in the long term strength of the UK economy.

I have had the opportunity to meet a number of major Japanese investors here in Tokyo, who have reiterated to me their belief in the strength of the UK economy and their commitment to a mutually beneficial partnership.

And Prime Minister Abe, it was good to hear you reaffirm your continued faith in the UK economy, including after Brexit, as we addressed business leaders earlier today.

As we announced earlier this month, our intention is that the UK will be free to sign new bilateral trade agreements with partners around the world in any interim Brexit period.

And we have agreed here today that we want to see a swift conclusion of the ambitious EU Japan Economic Partnership Agreement. Prime Minister Abe and I have agreed that as we exit the EU, we will work quickly to establish a new economic partnership between Japan and the UK based on the final terms of that agreement.

We will set up a new joint working group to examine how we can unblock remaining barriers to trade and take steps to build the closest, freest trading relationship between the UK and Japan after Brexit.

And we have agreed to build cooperation in industrial policy across science, innovation, and energy, to ensure thriving and competitive economies.

Conclusion

So thank you, Shinzo.

My first visit to your country has been a memorable one. I have seen your rich traditional culture and the modern dynamism of Japan.

And our personal friendship reflects the deep friendship and bonds between our two countries.

This visit marks a great step forward not only in enriching our existing ties, but agreeing our shared vision of even deeper cooperation in the future.

And I know that we both believe these steps will not only increase our own security and prosperity, but also see us together playing a unique role as standard-bearers for the open, liberal, innovative and secure world order both our great nations rely upon.