LONDON, Dec 15 : Britain on Monday said it had finalised a free trade deal with South Korea after two years of talks to upgrade their post-Brexit trading relationship, secure preferential market access, and lock in lower tariffs for longer.
Talks on the upgraded trade deal with South Korea were launched two years ago, with the aim of modernising a carry-over trade deal from when Britain left the European Union.
Britain’s trade ministry said the new deal advanced the trading relationship in services sectors and digital trade, while locking in tariff-free access on 98 per cent of tariff lines – some 2 billion pounds ($2.68 billion) worth of exports – that were part of the carry-over deal but had been set to expire.
“Today’s agreement secures the UK as a global leader in digital trade and innovation while boosting our world-class services sector… and giving cast-iron protections to our key industries,” Trade Minister Chris Bryant said.
Britain has already signed a new free trade agreement with India this year and negotiated a deal to reduce some of U.S. President Donald Trump’s tariffs that have upended global trade.
The government also aims to conclude free trade talks with Gulf countries soon as it builds trade ties after leaving the EU in 2020.
Britain said the South Korea deal would give a 400 million pound boost to the services sector and strengthen access for financial services, and contained digital trade provisions such as legitimising the use of e-contracts.
Car, drinks and pharmaceutical industries will benefit from the continuation of lower tariffs, as well as an updated “rules of origin” system that will simplify tariff-free access and allow a broader range of inputs to be used in supply chains.
South Korean trade minister Yeo Han-koo said the deal would “strengthen the free-market system in a trade environment with heightened uncertainty”, and give an opportunity to build further economic ties with Britain.
($1 = 0.7467 pounds)