Britain And South Korea Have Signed A Free Trade Agreement With The European Union.

According to the financial times, Britain and South Korea formally signed a continuing free trade agreement (CO) in August 22nd (2019). Ntinuity Free Trade Agreement), which allows the two countries to maintain trade relations without agreement in the UK.

In order to speed up the plan of no agreement to withdraw from Europe, the two countries reached an agreement in June this year, which will protect the annual trade volume of the two sides. The trade volume of goods and services between the two countries reached 14 billion 600 million pounds in 2018. As far as export sales are concerned, South Korea is one of the 15th largest trading partners in the UK. According to government data, bilateral trade with Korea accounts for about 1.1% of total trade in the UK and 48% in the EU.

However, the continuity free trade agreement between Britain and South Korea is not a permanent trade agreement, and will be re negotiated within two years. The United Kingdom must also obtain the South Korean agreement to maintain the existing tariff free terms to protect the British goods or the main components from the EU. Trade experts say it is a pleasure to sign the agreement, but so far the government has not been able to sign similar agreements with most of its important trading partners.

David Henig, a former official of the Ministry of international trade, said that 16 countries in the UK's 24 largest trading partner countries enjoy preferential trade agreements. Although Britain has signed trade agreements with some countries, the volume of trade covered by these agreements will be reduced. At present, only South Korea will not be affected by the lack of agreement. The Ministry of international trade said that the continuity of free trade agreement between Britain and South Korea would copy the free trade agreement between the EU and South Korea as far as possible, allowing enterprises to continue to enjoy preferential terms.

The main export products of the United Kingdom are services, automobiles and fuels. Trade agreements are welcomed by various industries, such as the automotive industry, the technology industry, renewable energy industry, retail industry and ceramics industry. The fastest growing part of British exports to South Korea includes the automobile industry, which increased to 943 million pounds in 2018, an increase of 1/3 over 2017. As part of the preparations for the EU's departure, the UK has signed 13 continuing trade agreements with 38 countries so far.