The executive on Sunday acknowledgedit'llbelieve forging a separate unfastenedbusiness agreement with the U.K. after Britons in a surprise referendum Thursday voted to leave the Eu Union. Korea has an FTA maintainthe ecuthat mightnow notduvet the lucrative U.K. export marketplace once it leaves the EU.
The Ministry of Trade, Industry and effort said tariff cuts in bilateral trade with the U.K. will disappear with its go out from the EU and a new trade pact is needed. The U.K. is on the correct track to ease Brexit over two years of negotiations with the EU, and for that length the terms of the Korea-EU FTA will remain effective. Yet if Korea fails to forge a separate FTA inside that erait mightneed to abide by potential of trade regulations set by London which could be more stringent than the Korea-EU FTA. Analysts steered Seoul to get began on separate FTA talks with the U.K. Korea's exports to the U.K. totaled US$7.39 billion in 2015, an insignificant 1.4 % of overall outbound shipments. But they might lose competitiveness if China and other competitors forge brand new FTAs first, which might tilt Korea's trade balance with the U.K. from a surplus final year to a deficit.