Particle.news
Download on the App Store

UK and South Korea Finalize Upgraded Free Trade Agreement That Averts Tariff Hikes

The pact replaces an expiring post‑Brexit arrangement to keep preferential access in place for British goods and services.

Overview

  • The agreement secures tariff‑free treatment on 98% of tariff lines, safeguarding about £2 billion of exports that were weeks from higher duties.
  • UK officials project roughly £400 million in additional services exports with stronger access for financial firms and new digital trade rules including recognition of e‑contracts.
  • Updated rules of origin will simplify tariff‑free access and allow more diverse inputs across supply chains, benefiting sectors such as automotive, drinks and pharmaceuticals.
  • The upgrade concludes two years of talks to modernise the post‑Brexit carry‑over deal, with both governments publicly welcoming the outcome.
  • Companies including Bentley, Jaguar Land Rover and Diageo endorsed the agreement, citing preserved access to a key market and support for rising Korean demand for UK brands.