According to South Korean media reports, the free trade agreement between South Korea and Britain will enter into force automatically on the date of brexit. At that time, South Korea will enjoy preferential tariff treatment regardless of the form of brexit.
In fact, as early as the end of 2016, the two countries established a FTA working group to start negotiations. On August 22 this year, the two sides formally signed a free trade agreement. It is reported that the content of the agreement is basically consistent with the terms of the existing South Korea EU free trade agreement. Since then, South Korea has been actively preparing to complete the relevant procedures such as parliamentary approval before October 31 this year, when the UK originally set the time of brexit.
At present, the EU has signed about 40 free trade agreements, covering more than 70 countries. It was pointed out that the FTA between the UK and the ROK will maintain the continuity of trade relations between the UK and the ROK, so that enterprises of both sides can continue to trade without any additional trade barriers.
However, the FTA between Britain and South Korea is not a permanent trade agreement, and the two countries need to renegotiate it within two years. Cui Hongjian, director of the European Institute of the Chinese Academy of international studies, analyzed in an interview with this newspaper: according to EU law, the UK has no right to negotiate free trade agreements with other non EU countries before leaving the EU. Specific issues, such as tariffs, can only be further agreed upon after Britains real brexit
Pave the road ahead of time to attract investment
It is worth noting that the signing of the FTA between the UK and the ROK is not a case in point. Since the start of the brexit process, the UK has been striving to reach new agreements with non EU trading partners, BBC reported. Britains trade with these countries accounts for about 11% of Britains total foreign trade. The UK said it hoped to copy as much as possible the EUs trade agreement and ensure that it was ready to leave without an agreement. So far, the UK has signed 18 new trade agreements covering 48 countries or regions, involving about 8% of the UKs total foreign trade.
More political gestures
According to Cui Hongjian, the populist forces who advocate brexit and the elites who insist on market opening will continue to struggle. Will Britain be more open or more conservative after brexit? If the problem is not handled properly, the UK economy may be affected or even shrink. In particular, the UKs over dependence on the financial services industry, incomplete industrial chain and reduced capital investment supporting innovation will be further exposed. The size of the UK market is not attractive enough compared to the EU single market. If Britain does not handle its economic and trade relations with the EU well, its short-term disadvantages after leaving the EU market cannot be made up. These agreements with non EU countries before the end of the brexit process more reflect the political stance of the UK, so there may be exaggeration or deviation from economic demand, Cui said. When the two sides really enter into substantive trade negotiations, the differences will be fully revealed, and the difficulties and twists of the negotiations at that time may hit the current political efforts. (Wang Ying) overseas edition of peoples daily (6th Edition, November 2, 2019). Source: responsible editor of overseas website: Yang Zeyu ufe63 nf6036
According to Cui Hongjian, the populist forces who advocate brexit and the elites who insist on market opening will continue to struggle. Will Britain be more open or more conservative after brexit? If the problem is not handled properly, the UK economy may be affected or even shrink. In particular, the UKs over dependence on the financial services industry, incomplete industrial chain and reduced capital investment supporting innovation will be further exposed.
Overseas edition of peoples daily (6th edition on November 2, 2019)