Republic of Korea Upgraded Free Trade Agreement: Round Three Negotiations

Thursday 28th November 2024 Written Statements

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

The third round of negotiations on an upgraded free trade agreement (FTA) with the Republic of Korea (RoK) took place in Seoul between 5 and 14 November 2024.

The talks were the UK’s first with the RoK since the Secretary of State for Business and Trade announced the Government’s intention to deliver the UK’s FTA negotiations programme in July.

Economic growth is our first mission in Government and FTAs have an important role to play in achieving this. An upgraded FTA with the RoK will contribute to growth, jobs and prosperity in the UK, and provide long- term certainty to UK businesses. Improvements to the existing agreement will include a comprehensive chapter on digital trade, simplified rules of origin and a range of additional commitments that capture advancements in trade policy beyond our existing terms. Total trade between the UK and the RoK was worth £17 billion in the four quarters to the end of Q2 2024. An upgraded FTA is intended to support further growth in this trade.

Negotiators made good progress on a number of areas, including but not limited to:

Digital trade

Constructive discussions were held to build on the existing agreement’s limited digital provisions. Discussions during the round covered a range of areas, including data, trade digitalisation, and co-operation on emerging technologies.

Rules of origin

Good progress was achieved towards securing a new rules of origin chapter that supports current and future supply chains. Discussions covered the chapter’s general provisions and origin procedures text, as well as product specific rules.

Services and business mobility

Productive discussions were held across a range of areas including domestic regulation, financial services, business mobility and professional and business services. The UK is seeking commitments to open up new opportunities for services trade.

Customs and trade facilitation

Good progress was made, with sides agreeing a large part of the chapter. These commitments will make customs processes more predictable and facilitative.

Good regulatory practice

Negotiators made significant progress towards agreeing the RoK’s first good regulatory practice chapter, which will support companies to operate in a more transparent and predictable regulatory environment.

Other areas

Positive discussions were held across a range of areas of the FTA including supply chains, trade and gender equality, and anti-corruption.

The Government will only ever sign a trade agreement which aligns with the UK’s national interests, upholding our high standards across a range of sectors, including protections for the national health service.

The fourth round of negotiations is expected to take place in London in the spring of 2025. The Government will continue to work towards delivering outcomes in the FTA that secure economic growth for the UK and will update Parliament on the progress of discussions with the RoK as they continue to develop.

[HCWS258]