With regard to the UK’s upcoming FTA renegotiations with the Republic of Korea, ALFED would like to share the following update on behalf of the Department for Business and Trade:
- The UK and Republic of Korea (RoK) are due to launch an upgrade of our existing Free Trade Agreement (FTA) later this year. When we negotiated the original continuity agreement with South Korea, we agreed a timebound clause that allowed for the use of EU content in meeting the EU-RoK rules of origin, which the agreement still contained. We also agreed a timebound clause on shipping goods via the EU as part of the Direct Transport provision. These clauses were set to expire on 1 January 2024. In advance of launching these upgrade negotiations, we are pleased to announce that both parties have agreed to an extension to these timebound clauses.
- These extensions will provide certainty for businesses trading between the UK and RoK and mean that exporters in both the UK and RoK will be able to continue using EU cumulation arrangements as they have done to date, while negotiations are ongoing.
- The extensions will apply for a further two years while the UK and RoK work to agree a new future proofed set of rules of origin, specifically tailored to our bilateral trade. This agreement allows for both parties to agree to extend this period further, should it be required.
- The UK looks forward to productive negotiations with the RoK in this area, focused on delivering an agreement which provides continuity in existing trade, allows both economies to maximise future trading opportunities and protects against supply chain shocks.
As ever, the Department for Business and Trade are still keen to understand business needs as we prepare for negotiations.
Please contact:Charis Pegman |FTA Negotiations and Policy Lead, Rules of Origin (Manufactured Goods) – Mexico, South Korea, Switzerland, Israel and Turkey |Trade Policy, Implementation and Negotiations (TPIN)
Department for Business and Trade |E-mail: Charis.Pegman@beis.gov.uk