One Month Until Brexit... "Must Adapt to Various Changes Including Tariffs and Import Regulations"

[Asia Economy Reporter Hwang Yoon-joo] The Korea International Trade Association (KITA) and KOTRA held a seminar titled "Post-Brexit Changes and Guidance on Utilizing the Korea-UK FTA" on the 24th at the Trade Tower in Samseong-dong.

The European Union (EU) and the United Kingdom confirmed the UK's withdrawal from the EU (Brexit) on January 31 and set a transition period until December 31 of this year. Currently, both sides are negotiating future relations covering trade agreements, security, and diplomacy. However, with the end of the Brexit transition period just over a month away, negotiations on future relations between the EU and the UK are progressing slowly, raising renewed concerns about a 'no-deal Brexit' with no agreement.

In response, KITA and KOTRA held this seminar to provide guidance on the outlook for changes in the trade and investment environment in the UK and EU after Brexit and on utilizing the Korea-UK Free Trade Agreement (FTA), aiming to enhance the trade response capabilities of Korean export companies.

The first presenter of the day, Professor Kang Yoo-duk of Hankuk University of Foreign Studies, spoke on the topic "Trends and Prospects of UK-EU Future Relations Negotiations." He explained the negotiation issues such as fishing rights and fair competition, as well as the sharply opposing positions between the EU and UK governments regarding the Internal Market Bill, in an easy-to-understand manner based on the local political situation, and predicted the future direction of the negotiations.

Following this, Kim Jung-gyun, Senior Researcher at KITA, explained changes in tariffs, customs clearance, import regulations, and certification under various scenarios such as an agreed Brexit between the UK and EU and a no-deal Brexit, and presented guidelines for responding to Brexit.

Through a live video connection from London, Cho Young-soo, Director of KOTRA London Trade Center, introduced the Brexit preparedness movements of major companies in the UK and EU. Local global companies have begun practical responses such as relocating production and sales bases, stockpiling inventory, and reviewing logistics plans to prepare for customs clearance delays after Brexit.

The Ministry of Trade, Industry and Energy introduced the main contents and utilization methods of the Korea-UK FTA, which will take effect immediately after the end of the transition period. The Korean government proactively signed the Korea-UK FTA last year in preparation for the exclusion of the UK's application of the Korea-EU FTA due to Brexit. Through this, even if the UK leaves the EU, the preferential tariff benefits of the existing Korea-EU FTA will be maintained equally.

Choi Yong-min, Head of the Trade Support Center at KITA, said, "Depending on how Brexit proceeds, it will affect both export-import companies and local investment companies in the UK and EU," adding, "Going forward, KITA and KOTRA will collaborate to actively support Korean companies to effectively prepare for business changes in the UK and EU after Brexit."

Meanwhile, due to the resurgence of COVID-19 and the elevation to social distancing level 2, on-site attendance was restricted, and the seminar was conducted only through a live broadcast on KITA's YouTube channel.