UK Hopes to Reach Trade Deal With South Korea by Brexit Day, but Not Japan

The United Kingdom hopes to reach a deal with South Korea to maintain the effects of the European Union-South Korea Free Trade Agreement should the U.K. leave the EU with no transition deal, the U.K. Department for International Trade (DIT) said in guidance issued April 23. “The UK is seeking to agree arrangements with South Korea to ensure trade continues with minimal disruption after the UK leaves the EU,” with “minimal changes to tariffs and quotas, even if the UK leaves the EU without a deal,” the guidance said. If no deal is reached, trade between the U.K. and South Korea will be subject to World Trade Organization most-favored nation rates, it said.

On the other hand, the U.K. does not expect to reach a similar deal with Japan by the time it leaves the EU, currently scheduled for Oct. 31 (see 1904100077), the U.K. DIT said in another guidance document issued the same day. “The UK will not agree arrangements with Japan by exit day,” it said. “If the UK leaves the EU without a deal, existing trade agreements would no longer apply. This would mean the UK would not have preferential trade arrangements for exports to Japan.” Guidances issued on trade with Taiwan and Vietnam, meanwhile, say trade will continue at WTO MFN rates after Brexit because the U.K. currently has no trade deal in place with those countries.