The UK-Korea Agreement: What You Need to Know
On September 4, 2020, the United Kingdom and South Korea signed a historic free trade agreement, marking the UK’s first major trade deal with an Asian country since Brexit. The agreement aims to deepen economic ties between both countries and create new opportunities for businesses and individuals on both sides.
What does the agreement cover?
The UK-Korea agreement covers a range of sectors, including automotive, pharmaceuticals, food and drink, and services. It eliminates tariffs on 99% of all goods imported from the UK to South Korea and vice versa, making it easier and cheaper for businesses to trade between the two countries.
The deal also includes commitments to protect intellectual property rights and improve regulatory cooperation, which will help to reduce barriers to trade and make it easier for UK companies to do business in South Korea.
What are the benefits for the UK?
The agreement provides significant benefits for the UK economy, particularly for businesses in key sectors such as automotive and pharmaceuticals. These industries stand to gain the most from the elimination of tariffs, which will make their products more competitive in the Korean market.
UK farmers will also benefit from reduced tariffs on exports of products such as pork and beef, which are highly sought-after in South Korea.
In addition, the agreement will help to strengthen the UK’s position as a global trading nation and provide a welcome boost to the economy as it seeks to recover from the impact of the COVID-19 pandemic.
What are the benefits for South Korea?
For South Korea, the agreement represents a significant opportunity to expand trade with one of the world’s largest economies and to access new markets in Europe. South Korean businesses will also benefit from the elimination of tariffs on their exports to the UK.
In addition, the agreement will help to deepen the economic relationship between the UK and South Korea, which has been growing steadily in recent years. South Korean companies have been investing heavily in the UK, particularly in the automotive sector, and the agreement is expected to encourage more investment in the future.
What’s next?
The UK-Korea agreement must now be ratified by both countries’ parliaments before it can come into force. This process is expected to take several months, although both governments have expressed their commitment to completing it as soon as possible.
Once the agreement is in place, it is expected to provide a significant boost to bilateral trade and investment between the UK and South Korea, strengthening the economic ties between both countries.