Great Britain has secured its first post-Brexit trade deal after signing an in-principle free trade agreement with South Korea.
The agreement, which International Trade Secretary Liam Fox signed with his South Korean counterpart Yoo Myung-hee in Seoul, seeks to maintain existing trade arrangements with the country after Brexit.
The Financial Times says it “comes amid growing uncertainty over bilateral trade conditions after the UK leaves the world’s single largest economic bloc”. The BBC adds that the agreement is “designed to provide stability under a no-deal Brexit”.
The Korea Times explains that there have been “concerns” that South Korean companies “may no longer enjoy the benefits” of current arrangements if the UK crashes out without a deal.
Great Britain and South Korea will largely maintain the trade terms that are in the current deal between Seoul and Brussels, which took effect in July 2011.
The Ministry of Trade, Industry and Energy said in a statement that the deal includes keeping zero-tariffs on South Korean exports such as auto parts and automobiles.
After the talks, Britain and South Korea also vowed to expand cooperation in emerging technologies such as hydrogen and nuclear energy.
Seoul’s trade minister Yoo Myung-hee 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.”
The two countries plan to ratify the deal before October 31st, the new deadline for Brexit.
Although the UK is South Korea’s second-largest trading partner among the EU members, it is its 18th-largest trading partner, accounting for less than 2% of South Korea’s overall trade.
Last year, South Korea’s exports to the UK were worth $6.36bn. The Asian country exports mostly cars and ships to Britain. Going the other way, the UK exports crude oil and automobiles to South Korea.