The British government also sees the deal as an important step toward joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will give United Kingdom businesses "a gateway to the Asia-Pacific region", the government said.
Europe and Britain's auto industries called on Monday on the two sides to urgently clinch a free trade agreement, warning that a disorderly Brexit would cost the sector 110 billion euros ($130 billion) in lost trade over the next five years.
The UK-Japan Comprehensive Economic Partnership Agreement could also benefit the nearly 1,700 businesses across the North East, North West and Yorkshire that exported to the country a year ago and help more businesses in the area sell their goods there for the first time.
The deal was an "important step" towards joining the Trans-Pacific Partnership, she added.
Japan is seeking to conclude months of talks on a broad post-Brexit trade deal with Britain later on Friday (Sept 11) when top negotiators speak via a video conference.
International Trade Secretary Liz Truss said it is a "historic moment" for the two countries which will bring "new wins" for British businesses in the manufacturing, food and drink, and tech industries.
Britain has signed its first major post-Brexit free trade deal with Japan worth an estimated £15bn, the worldwide trade secretary Liz Truss has announced.
Digital and data provisions in the agreement went "far beyond" those in the EU's trade deal with Japan, helping British financial technology firms operating in the Asian country, it said.
Concerns over a post-Brexit deal have heightened in the past few days since the British government said that new legislation breaches parts of the withdrawal agreement, which allowed for the country's smooth departure from the bloc.
Business leaders welcomed the agreement, but stressed that securing a deal with the European Union remained the most important goal.
You can nearly hear the sighs of relief echoing around Westminster and within the business community.
Nearly all exports to Japan (99%) will benefit from tariff-free trade.
The UK-Japan deal had been widely seen as one the easiest within reach for London, being based largely on the EU-Japan agreement.
And with trade with Japan accounting for just 2% of the UK's total, the expected boost to GDP of 0.07% over the long term is a tiny fraction of what might be lost from leaving the EU.
The announcement states: "Any deal should include zero tariffs and quotas, appropriate rules of origin for both internal combustion engine and alternatively fuelled vehicles, plus components and powertrains, and a framework to avoid regulatory divergence".
Even then, the talks haven't been as speedy or straightforward as initially hoped - which may not bode well for negotiations elsewhere.