#SupplyChainsCooperationAgenda

[thxnews]

FTA Upgrade Boosts UK-Korea Ties

  Celebrating 140 Years of Diplomatic Relations

In a landmark meeting during President Yoon Suk Yeol’s State Visit, Secretary of State Kemi Badenoch and Minister Bang, Moon Kyu announced negotiations.   Strengthening Economic Ties for the Future The United Kingdom and the Republic of Korea embarked on a mission to upgrade their Free Trade Agreement (FTA) for a more robust and innovative economic partnership. The RT. Hon. Kemi Badenoch MP, Secretary of State for the Department for Business and Trade (DBT) for the United Kingdom, and Bang, Moon Kyu, Minister of the Ministry of Trade, Industry and Energy (MOTIE) for the Republic of Korea, convened in London on November 22, 2023. This meeting marked a significant moment during the State Visit of President Yoon Suk Yeol to the United Kingdom, as both nations celebrated 140 years of diplomatic relations.  

Modernizing and Deepening Economic Ties

Upgrading the Free Trade Agreement aims to enhance economic cooperation between two like-minded nations. As part of the joint statement released after the meeting, both nations expressed their pleasure in announcing the launch of negotiations to upgrade the existing Free Trade Agreement. Recognizing the importance of deepening economic ties, the upgrade is set to promote trade and investment, ensuring a thriving relationship for years to come.   Addressing Contemporary Challenges Adapting to the changing global economic landscape, the negotiations include discussions on cumulation, direct transport, and a new Rules of Origin chapter. To address contemporary challenges, the negotiations will cover temporary arrangements regarding cumulation and direct transport for two years. Additionally, both nations will develop a new Rules of Origin chapter to reduce costs for businesses, recognize existing and future supply chains, and enable them to maximize the benefits of the FTA.  

Paving the Way for Digital Innovation

The negotiations aim to include a modern and comprehensive Digital chapter to facilitate secure trade through digital technologies. Recognizing the importance of the digital realm, both nations will work towards a Digital chapter that fosters efficient and secure trade through digital technologies. This includes ensuring free and trusted cross-border data flows, preventing unjustified data localization requirements, and prohibiting customs duties on electronic transmissions.   Expanding Cooperation Across Multiple Agendas The commitment to broadening cooperation includes supply chains, energy, small and medium-sized businesses, and the bioeconomy sector. In addition to upgrading the FTA, both the United Kingdom and the Republic of Korea are committed to broadening cooperation across emerging trade agendas. This includes discussions on supply chains, energy cooperation to meet climate change ambitions, support for small and medium-sized businesses, and strengthening collaboration in the bioeconomy sector.  

A Shared Commitment to Progress

Both nations express optimism about significant and rapid progress in the negotiations. The first round of negotiations is scheduled to commence in Seoul on January 22, 2024. With a shared ambition to conclude the upgraded agreement in a timely fashion, both parties express confidence in building upon the strong baseline established in the existing FTA. The negotiations will take place in the context of a strong and collaborative relationship, emphasizing the value of further trade integration in the region.   Building on Positive Conversations The negotiations will build upon positive and constructive conversations held between negotiation teams. The Secretary of State and the Minister of MOTIE instruct their teams to hold the first round of negotiations, building upon the series of positive and constructive conversations that have already taken place. The negotiations are expected to progress rapidly, reflecting the shared commitment to reinforcing their relationship through a modernized trade agreement. Signed in London on November 22, 2023. Sources: THX News, Department for Business and Trade & The Rt Hon Kemi Badenoch MP. Read the full article