The United Kingdom and South Korea signed a free trade agreement (FTA) on August 22, 2019, in Seoul, South Korea. The agreement is expected to boost trade between the two countries by reducing tariffs and removing other barriers to trade.
The UK is the first country to sign an FTA with South Korea after the latter signed a trade deal with the European Union. It is also the first agreement that the UK has signed in Asia since the Brexit referendum. The FTA is expected to secure the continuity of existing trade between the two nations after the UK`s departure from the EU.
According to the UK government, the agreement will benefit a wide range of sectors in both countries, including the automotive, pharmaceutical, and beverage industries. The FTA will eliminate tariffs on key UK exports such as Scotch whisky, and cars produced by companies like Jaguar Land Rover and Rolls Royce.
On the other hand, South Korea will benefit from reduced tariffs on a number of important exports such as auto parts, textiles, and machinery. The FTA will also enhance investment opportunities for companies in both countries. The UK government estimates that the agreement could boost UK exports to South Korea by up to £500 million ($670 million) in the long term.
The agreement also includes provisions for protecting intellectual property, promoting e-commerce and digital trade, and ensuring fair competition. The UK government has stated that the FTA will help to secure jobs and support economic growth in both countries.
The signing of the FTA is a significant milestone in the UK`s post-Brexit trade strategy. As the UK seeks to establish new trading relationships with countries outside the EU, agreements like this one will be crucial in securing access to new markets and maintaining existing trade relationships.
In conclusion, the free trade agreement between the UK and South Korea is a major achievement for both countries. It will provide significant benefits for a range of sectors and help to support economic growth and job creation. As the UK seeks to forge new trading relationships outside the EU, agreements like this one will be vital in securing its place in the global marketplace.