S.Korea, UK negotiate FTA to address possible hard Brexit

Marco Green
June 12, 2019

By virtue of that agreement, the volume of trade between the two countries in 2018 reached about $13.17 billion according to data from the South Korean ministry.

The South Korean trade ministry has confirmed that Britain and South Korea have agreed to sign a free trade deal to come into effect after Brexit.

Last year, the trade relationship between the United Kingdom and South Korea was worth US$18.5 billion and has increased by an average of 12% per year since the EU-Korea FTA was signed in 2011, according to a communique from the UK's Seoul embassy.

The settlement is roughly in accordance to the phrases of the existing Korea-EU FTA. South Korea exports mostly cars and ships to Britain, while it imports crude oil and cars.

Minister Yoo said the move will protect South Korea from uncertainties in advance of Brexit amid worsening export conditions due to the Washington-Beijing trade war and China's slowing economy.

South Korea - Asia's fourth greatest economic system - is a world chief in electronics, steel and auto industry.

There were 6,900 British VAT-registered businesses exporting goods to Korea in 2017, with 5,400 British businesses importing Korean goods to the UK.

The UK is pushing to strike agreements with its trading partners as the Brexit deadline looms.

Britain, Seoul's second-largest trading partner among the European Union members, is the 18th-largest trading partner for Asia's fourth-largest economy, accounting for less than 2 percent of its overall trade.

These represent 11% of the UK's total global trade.

A priority for the government has been to acquire these countries to roll over their substitute deals with the UK.

It is Britain's first post-Brexit trade deal in Asia and follows similar agreements with nations including Chile, Iceland, Norway and Switzerland, AFP said.

Other reports by Click Lancashire

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