- The UK and South Korea have signed a post-Brexit trade deal
- This deal is to ensure steady trade relations even after Brexit
- South Korean exports to the UK topped $6 billion last year
While some of most reported parts of the Brexit process has been regarding the politicians at the center of negotiations, which includes their resignations, criticisms, and compromises, a lot of debate has also surrounded how a UK exit will affect the UK and its financial relationships with other countries. One of the debates that have sprung up is regarding how the UK will be able to trade with other countries, particularly those that are going to remain a part of the EU itself and those that trade significantly with EU countries.
Korean imports will be unaffected by Brexit
It now seems the UK is taking steps towards making sure that some of its trade alliances remain intact regardless of what happens with Brexit as it was reported on June 10, 2019, that the UK has signed a free-trade deal with South Korea that will ensure their trade relationship even after Brexit.
This deal was signed between the international trade secretary Liam Fox and his South Korean counterpart Yoo Myung-hee in Seoul.
This is the first post-Brexit trade deal that has been secured by the UK and an Asian country and will go a long way towards making sure that the transition to independence is a smooth one. The agreement is in line with the existing Korea-EU FTA and covers a number of different commercial sectors.
For example, South Korean exports items such as cars and auto parts, which is a very significant part of the relationship between them and the UK as South Korea exports cars and ships to Britain while they import crude oil.
$6 billion in annual trade
The deal is helping to ensure that the UK’s relationships with its various partners are left intact even after October 31 when they leave the EU and it is believed that deal will be ratified by the end of October and will be implemented in November 2019. Ms. Yoo said:
“The deal is significant as it eased uncertainties sparked by Brexit, amid the already challenging environment for exports on the escalating trade row between Washington and Beijing.”
Exports from South Korea to the UK were worth over $6 billion in the last year and the UK is their second largest trading partner among EU Nations and is South Korea’s 18 largest trading partner in general. Needless to say, preserving this relationship is of benefit to both countries and they are not looking to destroy what they have built over the years because of the Brexit saga.