The UK and South Korea have signed an outline free trade agreement (FTA) that seeks to maintain existing trade arrangements post-Brexit, report agencies. International Trade Secretary Liam Fox signed the deal with his South Korean counterpart Yoo Myung-hee in Seoul. The preliminary agreement marks the first post-Brexit trade deal the UK has secured in Asia.
The agreement is roughly in line with the terms of the existing Korea-EU FTA. "In so far as a (UK-S Korea) deal has been struck that's a landmark moment," Mouhammed Choukeir, chief investment officer at private bank Kleinwort Hambros told 5 live. "Where it's not a big deal is that actually the biggest trading bloc still needs to be negotiated - the EU and US."
The deal would cover South Korean exports including cars and auto parts. South Korea exports mostly cars and ships to Britain, while it imports crude oil, cars and whisky. The agreement is designed to provide stability under a no-deal Brexit, with the UK due to leave the EU on 31 October, with or without a deal. Mr Fox said: "The value of trade between the UK and Korea has more than doubled since the EU-Korea agreement was applied in 2011.
