UK Signs a Free Trade Deal with South Korea
The UK and South Korea have contracted an in norm free trade contract (FTA) that seeks to continue existing trade preparations post-Brexit.
International Trade Secretary Liam Fox contracted the deal with his South Korean counterpart Yoo Myung-hee in Seoul.
The first contract marks the first post-Brexit trade deal the UK has protected in Asia.
The contract is unevenly in line with the terms of the existing Korea-EU FTA.
It would cover South Korean exports including cars and auto parts. South Korea exports mostly cars and ships to Britain, while it imports crude oil and cars.
The contract is planned to provide solidity under a no-deal Brexit, with the UK due to leave the EU on 31 October, with or without a deal.
“The deal is important as it eased doubts sparked by Brexit, amid the already challenging environment for exports on the escalating trade row between Washington and Beijing,” Ms. Yoo said.
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Both countries purpose to approve the deal by the end of October, and implement it in November.
South Korea – Asia’s fourth largest economy company – is a global leader in electronics, steel and auto industry.
The country’s exports to the UK hit $6.36bn (£5.0bn) last year.
The UK is South Korea’s second largest trading partner among EU members, and the Asian nation’s 18th largest trading partner.
The UK is aggressive to strike contracts with its trading partners as the Brexit deadline looms.
As per a member of the EU, the UK is part of 40 trade deals which the EU has with other countries.
If the UK leaves the EU without a deal, it would fall out of these deals immediately, disrupting about 11% of UK total trade.
An importance for the government has been to get these countries to roll over their trade deals with the UK.
So far the UK has approved “continuity” deals with 12 countries and regions, including Israel, Norway and Iceland, Switzerland and Chile.