Government: "Thoroughly Preparing for Brexit... Preferential Trade Relations to Continue through Korea-UK FTA"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] It is anticipated that even if the United Kingdom leaves the European Union (EU), the impact on our trade will be limited due to the Korea-UK Free Trade Agreement (FTA).

On the 21st, the Ministry of Trade, Industry and Energy held a meeting at the Korea Trade Insurance Corporation in Jongno-gu, Seoul, together with related ministries, public institutions, and the British Embassy in Korea to comprehensively review preparations for the upcoming Brexit at the end of this month.

At the meeting, Daniel Carruthers, Trade Policy Counsellor at the British Embassy in Korea, explained the Brexit situation scheduled for the 31st and the UK’s plans for future relationship negotiations with the EU during the transition period set to end this year.

The transition period refers to a temporary allowance for the UK to remain in the EU single market and customs union to minimize confusion caused by Brexit.

The government has already completed revisions to domestic laws, including tariffs, in preparation for Brexit, and expects the customs clearance system to operate smoothly in line with the Korea-UK FTA coming into effect next year. Additionally, until the end of this year, the Korea-EU FTA will apply to exports and imports with the UK.

The Korea-UK FTA applies the same concessions as the Korea-EU FTA, maintaining tariff elimination on all manufactured goods. Regarding rules of origin, products manufactured using EU materials for a limited period of three years will be recognized as originating within the region, and transit through the EU will be recognized as direct transport.

Jeong Yoon-jong, FTA Policy Officer, stated, "Despite Brexit, preferential trade relations with the UK will continue through the Korea-UK FTA," adding, "We will closely monitor future relationship negotiations between the UK and the EU to comprehensively assess the impact of Brexit and respond promptly."