The two sides have been locked in negotiations since last month and are now expected to agree a deal which will outstrip parts of the Japan-EU agreement. Although Japan and the UK missed the deadline last month set by chief negotiator, Hiroshi Matsuura, a deal is now in sight after Tokyo agreed to slash import taxes on UK goods. International Trade Secretary, Liz Truss is expected to meet with her counterpart today in London to discuss the deal. It is understood that Japan has agreed to reduce import taxes on UK bacon to seal a deal. While Japan will agree to reduce tariffs on pork imports within 12 years in its EU agreement, those tariffs will be dropped immediately upon agreeing a deal with the UK. 

The two will also agree wider protections for Kobe beef and Scotch exports, better than what was included in the EU-Japan deal. 

Japanese officials have also indicated tariffs on automobiles and automobile parts could be removed. 

Trade minister Hiroshi Kajiyama said previously: “In the negotiations, we hope to urge Britain to bring forward the period for which tariffs will be removed mainly for autos and auto parts.”

According to The Sun, the future deal will also wipe out tariffs on British luxury leather goods while Japanese electric and car parts will be reduced in price. 

In light of this deal, the EU’s chief negotiator, Michel Barnier has indicated Brussels is willing to drop demands on state aid requirements. 

Mr Barnier has attempted to tie the UK into EU rules and regulations.

Telling European diplomats, he indicated this demand could now be dropped to be replaced by an independent dispute-settling mechanism. 

One diplomat said: “There must be a solid framework with independent oversight.

“If they agree to settle on broad rules for granting state aid and to have this independent institution, then we have a deal.”

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7.34am update: UK-Japan deal in sight 

A deal with Japan is now in sight after Tokyo agreed to drop import taxes on British pork and reduced prices for electrical and car manufacturing goods. 

International Trade Secretary, Liz Truss will meet with her counterpart today to thrash out an agreement. 

According to The Sun, she will hold talks minister Toshimitsu Motegi, while it is also understood British luxury leather will now no longer be taxed upon entering Japan.