S. Korea, UK reach FTA 'in principle' for possible 'no deal' Brexit
- 5 years ago
South Korea and the United Kingdom have reached a free trade agreement in principle...to prepare for a possible 'no deal' Brexit.
This means Seoul will be able to protect local companies trading with Britain.
Ko Roon-hee has the details.
S. Korea, UK reach FTA 'in principle' for possible 'no deal' Brexit
South Korea's trade ministry has reached an 'emergency bridge' trade agreement with the UK to maintain their deal even if 'no-deal' Brexit becomes a reality.
This means that, even if the UK leaves the European Union without agreements in place about what their relationship would be like in future, South Korean companies will be able to ship their main export items, such as industrial products, without tariffs under the Korea-EU FTA, which took effect in 2011.
As for the rough timeline, if the UK crashes out of the union on October 31st, the new FTA is expected to take effect the next day...after the National Assembly's ratification.
This agreement was reached during a meeting in Seoul on Monday between South Korea's trade minister Yoo Myung-hee and her British counterpart Liam Fox, the Secretary of State for International Trade in the UK.
S. Korea's trade volume with UK from Jan. to April marked around US$ 3.8 bil.
Currently, South Korea mainly exports cars and ships to the UK.
According to the Korea International Trade Association, South Korea's trade volume with the U.K. from January to April this year marked around 3-point-8 billion U.S. dollars.
During this period, the UK was South Korea's 19th largest trading partner.
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.
Seoul's trade ministry is preparing for other scenarios as well...including possible delays in the Brexit decision.
South Korea and the UK also vowed to cooperate in emerging sectors, including energy.
Ko Roon-hee, Arirang News.
This means Seoul will be able to protect local companies trading with Britain.
Ko Roon-hee has the details.
S. Korea, UK reach FTA 'in principle' for possible 'no deal' Brexit
South Korea's trade ministry has reached an 'emergency bridge' trade agreement with the UK to maintain their deal even if 'no-deal' Brexit becomes a reality.
This means that, even if the UK leaves the European Union without agreements in place about what their relationship would be like in future, South Korean companies will be able to ship their main export items, such as industrial products, without tariffs under the Korea-EU FTA, which took effect in 2011.
As for the rough timeline, if the UK crashes out of the union on October 31st, the new FTA is expected to take effect the next day...after the National Assembly's ratification.
This agreement was reached during a meeting in Seoul on Monday between South Korea's trade minister Yoo Myung-hee and her British counterpart Liam Fox, the Secretary of State for International Trade in the UK.
S. Korea's trade volume with UK from Jan. to April marked around US$ 3.8 bil.
Currently, South Korea mainly exports cars and ships to the UK.
According to the Korea International Trade Association, South Korea's trade volume with the U.K. from January to April this year marked around 3-point-8 billion U.S. dollars.
During this period, the UK was South Korea's 19th largest trading partner.
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.
Seoul's trade ministry is preparing for other scenarios as well...including possible delays in the Brexit decision.
South Korea and the UK also vowed to cooperate in emerging sectors, including energy.
Ko Roon-hee, Arirang News.