The United Kingdom and South Korea will work together to strengthen the supply chains between companies from the two countries. They sign an agreement in London to secure the supply of, among other things, computer chips to British companies.
The coronavirus pandemic and the rapid but uneven recovery have created challenges in supply chains. This affects companies all over the world.
The agreement, signed in London by South Korean trade minister Yeo Han-koo and his British colleague Anne-Marie Trevelyan, should also preclude a full trade agreement. Instead, negotiations will begin later this year.
In a statement about the deal, Trevelyan exults that this is “our tilt to Asia-Pacific in action”. The British trade minister also spoke of “strengthening ties with one of the largest economies in the world”. Trade between the United Kingdom and South Korea was worth 13.3 billion pounds in the year to September last year. Both countries also want to join the free trade agreement, especially with countries around the Pacific Ocean.
Britain must sign separate trade agreements with countries after Brexit. But, with its large middle class, it sees an important market in South Korea for, among other things, Scotch whiskey and Brompton folding bicycles.