Unique: Britain, South Korea agree to increase tariff-free commerce for 2 years

LONDON, Oct 16 (Reuters) – Britain and South Korea have agreed to increase a interval of low or zero tariffs on bilateral commerce by two years, forward of talks to forge a brand new commerce deal, the British authorities stated on Monday, in a lift for the automotive trade.

With out the extension, British companies, corresponding to automakers and foods and drinks firms, would have confronted excessive tariffs from Jan. 1 on exports of merchandise made utilizing supplies from the European Union, underneath so-called guidelines of origin, and on merchandise shipped through the EU.

Annual commerce between Britain and South Korea is price 18 billion kilos ($21.9 billion), and the 2 sides will start talks later this 12 months on a brand new commerce deal. Their present settlement was rolled over from Britain’s membership of the EU.

Britain’s minister for worldwide commerce, Nigel Huddleston, stated extending the tariff-free interval would offer welcome certainty for companies.

“That is improbable information for UK companies who can proceed promoting their improbable items with confidence to South Korea,” Huddleston stated.

South Korea is the seventh-biggest export marketplace for British-made automobiles and the third-largest provider of recent automobiles for Britain, that means any new tariffs “would have been unhealthy for each side,” stated Mike Hawes, the pinnacle of the British automotive trade commerce physique.

“We look ahead to the beginning of negotiations and swift conclusion of a modernised commerce deal that delivers extra advantages to our respective automotive sectors, particularly boosting commerce in EVs and associated applied sciences,” Hawes, the Chief Govt of the Society of Motor Producers and Merchants, stated.

($1 = 0.8237 kilos)

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