UK & South Korea to sign long-term agreement for future trade growth

Trade and investment are at the forefront of this visit, with the prime minister hosting key South Korean investors at Downing Street. The trade secretaries from both nations are preparing to sign an accord to commence negotiations for an upgraded free trade agreement (FTA), expected to be modern and world-leading, the UK government said in a press release.

The future-proofed FTA aims to accommodate the technology-driven landscape of the upcoming decades, focusing on new digital trade, rules of origin, and streamlining existing arrangements. It also includes digitising customs procedures.

South Korea, the world’s 13th largest economy, boasts approximately 45 million middle-class consumers and an import market projected to grow by 45 per cent by 2035. Since the initial FTA in 2011, trade between the UK and South Korea has more than doubled, now valued at £16 billion annually.

The negotiation launch coincides with South Korean businesses committing over £21 billion in new investments in the UK, particularly in renewable energy projects. This investment is anticipated to support more than 1,500 highly skilled jobs and is a precursor to the upcoming Global Investment Summit in London, the release added.

Moreover, this investment is fundamental to a new clean energy partnership between the UK and South Korea, aiming to triple global renewable energy capacity.

Prime minister Rishi Sunak said: “Long term, global partnerships are vital to our prosperity and security, both today and in the future. As two nations focussed on innovation, harnessing new technologies and defending the international rules-based order, the UK and Republic of Korea are natural partners.

“Through our new Downing Street Accord, we will drive investment, boost trade and build a friendship that not only supports global stability, but protects our interests and lasts the test of time.

“These close ties have already propelled £21 billion of investment between our countries, and I know a free trade agreement fit for the future will only drive further investment, delivering on my promise to grow the economy and support highly skilled jobs.”

ALCHEMPro News Desk (DP)