UK and South Korea strike trade deal

Britain and South Korea have completed a trade deal that the government says will create thousands of jobs and add billions of dollars to the British economy.

British industries including pharmaceuticals, car manufacturing, alcohol and financial services are expected to benefit from the expansion of existing duty-free trade on most goods and services.

The agreement is the Labor government’s fourth agreement, following agreements with the EU, the US and India; None of these deals have had a material impact on the UK economy so far.

Including South Korean culture music, cosmetic And foodIt has become much more popular in the UK in recent years.

Trade minister Chris Bryant, along with his Korean counterpart Yeo Han-koo, announced the deal at Samsung’s flagship store in London on Monday night.

Under the deal, 98 per cent of trade will continue to be duty-free, on the same terms as the EU has with South Korea and the UK has temporarily maintained after Brexit.

Britain’s deal with South Korea was due to expire in January 2026, but the new agreement will protect £2bn of Britain’s exports from a rise in tariffs.

Prime Minister Keir Starmer said the deal was a “major win for British business”.

“This agreement, which further facilitates trade between us, will help revitalize the economy and support employment and growth that will be felt all over the country,” he said.

Bryant said the deal “will provide strict protections for our key sectors to accelerate economic growth as part of our Plan for Change.”

South Korea is the UK’s 25th largest trading partner, according to the Department for Business and Trade. In the 12 months to the end of June this year, it accounted for 0.8% of the UK’s total trade.

Over the same 12-month period, official figures show UK exports to South Korea fell by 16.4%, while South Korean exports to the UK fell by 10.8%.

South Korea’s trade minister told the BBC that the economies of South Korea and Britain were “complementary” and denied that the decline in trade between the countries suggested the relationship was not as important as it once was.

Han-koo said the new agreement is more about reducing non-tariff barriers, such as making rules on product origin more business-friendly and creating new digital and investment protections.

“So these two economies can gain by collaborating more closely through this kind of framework,” he added.

Han-koo also said that Britain could serve as a gateway for South Korea in its trade with Europe, while South Korea could serve as a gateway to Asia for British companies.

The South Korea deal is the latest in a series of post-Brexit trade agreements, but independent budget forecaster OBR thinks deals struck with these major partners so far are unlikely to have a measurable impact on the UK economy by 2030.

The government has said various trade deals signed this year will grow the British economy by creating jobs and reducing red tape for small businesses.

However self assessment It showed that the deal with India would increase GDP by only 0.11% to 0.14%.

Especially this agreement criticized To potentially undermine British workers.

India is the UK’s 10th largest trading partner and accounts for 2.5% of British trade.

British companies, including Bentley Motors, Jaguar Land Rover (JLR) and Guinness owner Diageo, welcomed the news of the agreement with South Korea.

Frank-Steffen Walliser, chairman and chief executive of Bentley Motors, said South Korea is an important market for the company and the broader luxury vehicle market.

“Securing immediate ongoing access to South Korea and securing a positive, long-term trade agreement is great news. Smooth international trade is vital to the growth of automotive businesses in the UK.”

Diageo’s interim chief executive Nik Jhangiani said it would “help meet growing demand from South Korean consumers” for Guinness canned in Runcorn, Cheshire.

Emily Weaver Roads, interim international director of the Scotch Whiskey Association, said the Asia-Pacific region was the largest regional market in terms of whiskey value.

“Reducing trade barriers in the Republic of Korea will further increase Scotch Whiskey’s access to an important market, especially for single malts.”