Britain agrees Brexit trade deal with S Korea

Team Udayavani, Jun 10, 2019, 6:51 PM IST

London: Britain said on Monday it had concluded a trade deal with South Korea to maintain links after Brexit.

International Trade Secretary Liam Fox has agreed to a preliminary deal with Korean Minister of Trade Yoo Myung-Hee in Seoul, the UK government said in a statement.

“The UK and South Korea have signed an in principle free trade agreement that will allow businesses to continue trading freely after Brexit,” read a government statement.

“Trading on these terms rather than on World Trade Organization terms will deliver significant savings and help to safeguard British jobs.” The deal means British businesses can continue enjoying preferential terms with South Korea after Britain leaves the European Union at the end of October.

Trade between the two countries was USD 18.6 billion in 2018, and has risen by 12 per cent per year on average since the EU signed a free trade deal with South Korea in 2011.

Britain is scheduled to leave the bloc on October 31, when it will lose access to major markets covered by EU trade agreements, although it is seeking to replicate some of these.

However, without a Brexit agreement between London and Brussels, the UK will default to “third country” status with the EU, with trade relations run on World Trade Organization rules.