A new free trade agreement between the UK and South Korea has successfully averted impending tariff increases on British exports, securing vital trade links.
This crucial pact is set to safeguard £2 billion worth of UK exports, which were otherwise facing higher tariffs from January as a temporary arrangement with Seoul was nearing its expiry.
The deal is also projected to boost services exports by £400 million.
UK officials have hailed the agreement as the dawn of “a new golden age of UK-South Korea relations”.
Britain had previously benefited from the European Union’s trade deal with South Korea, subsequently securing a continuity agreement shortly before its departure from the bloc in 2020.
But that deal was set to expire on January 1, having already been extended for two years beyond its original expiration date.
Sir Keir Starmer described Monday’s agreement as “a huge win for British businesses and working people” alongside trade deals with the EU, India and the US.
Trade minister Sir Chris Bryant said: “Korean culture has taken off in the UK, with millions of Brits already binge watching great Korean TV like Squid Game and streaming K-pop artists like Blackpink – but this trade deal will take our relationship to the next level, with hundreds of millions of pounds and vast opportunities unlocked for businesses.”
Businesses including Bentley, Jaguar Land Rover and Guinness-owner Diageo praised the deal.
Diageo’s interim chief executive Nik Jhangiani said it would “help satisfy the growing demand from South Korean consumers” for Guinness, which is canned in Runcorn, Cheshire.
Bentley’s chairman Frank-Steffen Walliser said the deal would protect its access to “a key market” for luxury cars.
Source: UK Politics - www.independent.co.uk
