This “might take into account a different reaction from Seoul with respect to its position on a bilateral trade agreement,” but there is no tangible concern about that at this time, Blakely says. This agreement will further strengthen the UK-Korea trade relationship, which has already increased by an average of 12% per year since the signing of the EU-Korea FREE Trade Agreement in 2011. That is why it remains important to control these renegotiations, particularly the rules of origin, since the free trade agreement between the UNITED Kingdom and Korea only allows British products containing EU-27 content to receive temporary preferential treatment under the agreement for three years. In August, shortly after the provisional agreement was signed, Trade Minister Liz Truss wrote in the Telegraph about the triumph of classic British brands in South Korea. In 2018, Scotch whisky had a shipping value of about US$70 million and British potters exported for $17 million. Prime Minister Boris Johnson, who took office last month, praised britain`s withdrawal from the EU on 31 October, with or without agreement, and the government said it had now signed trade continuity agreements worth 89 billion pounds, up from 39 billion pounds in March, the UK`s initial exit date. The UK will publish the text of the agreement as soon as it is presented to Parliament. Before the virus dominated the global trade agenda, complications related to the rule of origin were one of the few details to be worked out in Seoul`s agreements with London. My priority is to ensure that British businesses are fully prepared for Brexit on Thursday 31 October and ready to trade. That is why I am pleased to sign this trade agreement today with one of the largest markets covered by the EU`s existing trade agreements. In its current form, it is not possible to ensure sustainable duty-free trade in all circumstances, particularly for products containing content from both the European continent and the United Kingdom. Under the current EU trade agreement, there is a provision that covers Korean companies that manufacture products using equipment from several countries. This must be emulated in the future by the EU, Britain and Korea, she said.
The transitional regime sealed in June 2019 between then-International Trade Minister Liam Fox and his South Korean counterpart, Yoo Myung-hee, is in line with the existing free trade agreement between Korea and the EU, a landmark agreement signed in 2011. Seoul-based experts warned, however, that while the “continuity agreement” has downplayed the shutdown in the near future, its move to a comprehensive free trade agreement (FTA) is still linked to the uncertain outcome of the UK trade agreement with the European Union.