The UK Concludes a Trade Deal with South Korea!

On 15 December, the UK Government announced that negotiations had concluded for the UK-South Korea (SK) Free Trade Agreement (FTA).  This deal is the fourth trade agreement the UK government has reached this year, following agreements with India, the EU, and the US.

The UK-SK FTA builds on the existing agreement carried over from the EU in 2021, promising to expand trade and unlock new opportunities for UK businesses.

More specifically, the FTA ensures:

• the £2 billion in UK goods exports at risk of additional duties can continue to benefit from reduced tariffs;
• transparency is enhanced around customs processes, and promotes the provision of paperwork electronically and in English;  
• increased publication of SK regulations in English, further helping UK firms to understand and comply with local law;
• SMEs gain from a dedicated chapter that signposts benefits and promotes cooperation on issues such as access to trade finance;

The FTA also includes dedicated provisions to promote faster and more predictable clearance processes for the release of goods.  It also contains a chapter on Good Regulatory Practice (GRP), emphasising opportunities for regulatory cooperation, highlighting mechanisms such as information exchange and dialogue, which can help address unnecessary regulatory divergence.

Now the negotiations are concluded, the UK and SK will work together to finalise the FTA text for signature.  The FTA will then be subject to the usual pre-ratification scrutiny procedures before entering into force once both the UK and SK have completed this process.  Importantly, CTPA will remain engaged with the UK Goverment to help businesses to benefit from the FTA through DBT FTA Utilisation Team.   More information can be found on the UK Government's website.