"Strengthening Core Supply Chain Cooperation Between Korea and the UK"… Declaration to Promote FTA Improvement Between the Two Countries

Activation of Digital Trade
Negotiations for CPTPP Membership

Yeohan Gu, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy, is speaking at a meeting with the export-import logistics industry held on the 5th at the Korea Trade Insurance Corporation in Jongno-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Sejong=Reporter Dongwoo Lee] As a follow-up measure to the Korea-United Kingdom Free Trade Agreement (FTA), both countries have agreed to share policy information on key supply chains. The currently limited two provisions on e-commerce norms in the bilateral FTA will be significantly strengthened to the level of the Korea-Singapore Digital Partnership Agreement, with plans to actively expand online platform product transactions.

On the 7th (local time), Yeo Hang-gu, Director General of Trade Negotiations at the Ministry of Trade, Industry and Energy, held the "1st Korea-UK FTA Trade Committee" in London with Anne-Marie Trevelyan, UK Secretary of State for International Trade, and shared these details. Both countries agreed to pursue Korea-UK FTA improvement negotiations within this year through a director-general level consultative body.

The Ministry of Trade, Industry and Energy evaluated that the Korea-UK FTA, which came into effect simultaneously with Brexit (the UK's withdrawal from the European Union), has secured continuity and stability for bilateral business. Trade between the two countries reached $11.8 billion last year when the FTA was implemented, a 32.6% increase compared to the same period the previous year, and the export utilization rate was about 90%, indicating that domestic exporters and small and medium enterprises actively utilized the preferential tariff rates under the Korea-UK FTA.

Last year, exports to the UK recorded $6 billion, driven by strong exports of key items such as electric vehicles, passenger cars, and wireless telephones. In particular, electric vehicle exports increased by 57% compared to the previous year, surpassing internal combustion engine vehicles. The top five export items last year were electric vehicles ($1 billion, 57%↑), passenger cars ($900 million, 15%↑), wireless telephones ($500 million, 37%↑), platinum ($400 million, 112%↑), and construction heavy equipment ($200 million, 126%↑).

Expectations for Revitalizing Bilateral Digital Trade
Expanded Cooperation for CPTPP Accession

The Ministry of Trade, Industry and Energy will pursue more concrete Korea-UK FTA improvement negotiations through the director-general level consultative body. New trade norm areas such as digital trade, supply chains, small and medium enterprises, carbon neutrality, and COVID-19 response will be discussed. Director General Yeo proposed strengthening the bilateral FTA e-commerce norms to the level of the Korea-Singapore Digital Partnership Agreement. The Korea-Singapore Digital Partnership Agreement, signed at the end of last year, is Korea's first digital trade agreement, enabling faster and safer product transactions through online platforms.

Director General Yeo also proposed establishing a new investment chapter in the bilateral FTA. This is expected to not only strengthen investment protection between the two countries but also secure the government's legitimate policy authority.

Both countries agreed to cooperate for accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Since the UK applied for CPTPP membership in February last year and is conducting accession negotiations with member countries, it has become possible to discuss specific cooperation measures with the Korean government. The CPTPP is a multilateral trade agreement involving 11 countries, accounting for 13% of global GDP and 15% of trade volume. Through this, both countries plan to respond to the rapidly changing global trade paradigm toward multilateralism.

A strategic cooperation memorandum of understanding (MOU) on key Korea-UK supply chains was signed to share each country's policy information. Considering the sharp increase in demand for platinum, used as an industrial raw material such as automotive emission control catalysts, the Ministry of Trade, Industry and Energy expects this to greatly contribute to sharing information on key raw material markets between the two countries in the future.

Director General Yeo stated, "Since the two countries have built mutually close supply chains in fields such as vaccines and bio, and offshore wind renewable energy, we will further stabilize existing supply chains and cooperate to establish new mutually beneficial supply chains going forward."

This content was produced with the assistance of AI translation services.