“For Hyundai, the UK is a very cheap market, but if the UK is stupid about the type of deal it has with the EU, then the Hyundai car market can be destroyed,” he warns. Truss said the deal would allow companies like luxury car maker Bentley “to act as they do today and will be able to seize the opportunities offered by Brexit.” On 22 August 2019, the United Kingdom (UK) and the Republic of Korea (Korea or South Korea) signed a Free Trade Continuity Agreement (FTA). [1] In the event of a no-deal Brexit on 31 October 2019, the trade agreement between the United Kingdom and Korea will enter into force and allow British and Korean companies to continue to act on the same preferential terms under the free trade agreement between the European Union (EU) and Korea. This was also followed by a joint statement agreed between His Majesty`s Ambassador to the Republic of Korea and the First Deputy Foreign Minister in Seoul on Wednesday 21 August. The Joint Declaration reaffirms our mutual commitment to human rights, counter-proliferation and trade liberalization and underlines the support of both countries for the rules-based trading system. South Korea, the world`s 12th-largest economy, was the first country in Asia to sign a post-Brexit tentative deal with the UK, representing an early victory for trade negotiators. The development is taking place to the extent that ministers are trying to conclude agreements after Brexit in order to retain trade rights on preferential terms with countries with which the UNITED Kingdom already benefits from an agreement in the context of EU membership. The United Kingdom and Korea have agreed to apply in the new agreement the same concessions as existed under the EU-Korea Free Trade Agreement, in force since July 2011. Under the EU-Korea Free Trade Agreement, no tariffs are imposed on all industrial goods and 98% of agricultural goods. [4] This also applies to bilateral trade between the United Kingdom and Korea under the Free Trade Agreement between the United Kingdom and Korea. [5] As a result, 99% of UK products would be placed on the Korean market without customs duties and vice versa. In particular, automobiles and auto parts are exported duty-free.

Fox tweeted: “This means that no matter what happens with Brexit, there will be full continuity in trade between our two countries and will form the basis of an ambitious future free trade agreement when we leave the EU.” The business continuity agreements signed so far now cover countries with trade of £89 billion, an increase of £39 billion in March 2019. Seoul may want to strengthen safeguards so that Korean EU companies can continue to supply the UK, regardless of the EU-UK deal. Its exports suffered a 10.4% drop in 2019 compared to the previous year and the regime will strive to sustain further losses. “British companies will reap huge benefits from this agreement. They will be able to continue to act under the same conditions as before and I hope that in the future we can work to build on this agreement and bring it back to a new level in the future,” Truss wrote. But others see it more cautiously. Dr Tony Michell, Asia managing director of The Seoul-based Euro-Asian Business Consultancy, warns that in the worst case, trade with South Korea could be reduced in the worst case. “But to be honest, their position on free trade agreements has always been quite politically neutral,” he says.

“Korea has signed and ratified 52 free trade agreements, so everything is very convenient as it does its business.” The UK insists that agreements be reached with its trading partners, given that the deadline for Brexit is emerging. . . .