Britain agrees trade deal with S. Korea to maintain links after Brexit

Cornelia Mascio
Giugno 12, 2019

The deal envisages maintaining the current status quo, as well as the terms of the EU-South Korea free trade agreement to provide stability to their partnership in the event of a no-deal Brexit. International Trade Secretary Liam Fox agreed a preliminary deal with Korean Minister of Trade Yoo Myung-Hee in Seoul, according to the statement.

Chief investment officer at Kleinwort Hambros, Mouhammed Choukeir commented: "in so far as a (UK-S Korea) deal has been struck that's a landmark moment".

In 2018, UK-South Korean bilateral trade was worth €16.4 billion and has increased by 12% a year since the conclusion of the EU-South Korea Free Trade Agreement in 2011.

The deal includes keeping zero-tariffs on South Korean exports such as auto parts and automobiles, the ministry said. "The deal is to cushion the risks from Brexit amid multiple headwinds from the escalating U.S".

"This means that whatever happens with #Brexit, there will be total continuity in trade between our two countries AND the basis for an ambitious future".

But beyond South Korea, the trade blocs and countries with whom agreements have been reached are not, in the main, star global economies.

As for the rough timeline, if the United Kingdom crashes out of the union on October 31st, the new FTA is expected to take effect the next day.after the National Assembly's ratification.

The settlement is roughly in accordance to the phrases of the existing Korea-EU FTA.

The agreement will be formally signed once it has been subject to formal checks.

The South Korea-EU FTA took three years to negotiate, was signed in 2010 and entered implementation in 2011.

South Korea will seek approval from its parliament and ratify the trade pact with Britain before October 31, the ministry said.

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