Free Trade Agreement Negotiations: South Korea

Business and Trade – in the House of Commons at on 7 March 2024.

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Photo of John Whittingdale John Whittingdale Conservative, Maldon

What recent progress she has made on negotiating a free trade agreement with South Korea.

Photo of Greg Hands Greg Hands Party Chair, Conservative Party, Minister of State (Department for Business and Trade)

We have excellent relations with South Korea, as my right hon. Friend will know as the Prime Minister’s trade envoy there. Bilateral trade totalled £16 billion in the 12 months to September 2023. Negotiations to upgrade our FTA with South Korea were launched as part of President Yoon’s state visit in November. Round 1 of the talks has already taken place, and round 2 will take place later this month here in London.

Photo of John Whittingdale John Whittingdale Conservative, Maldon

On Tuesday, in my capacity as trade envoy, I attended the Korean embassy for the signing of a memorandum of understanding on the joint development of a small modular nuclear reactor—just one area in which the business between our two countries is growing ever stronger. Will my right hon. Friend press ahead with the enhanced free trade agreement, which will offer huge opportunities to build on the existing £17 billion trade relationship?

Photo of Greg Hands Greg Hands Party Chair, Conservative Party, Minister of State (Department for Business and Trade)

My right hon. Friend is absolutely right. In the UK, of course, we have our own, superb Rolls-Royce model of small modular reactor as well. He is right about the importance of our growing trading relationship with Korea. As a former Secretary of State for Culture, Media and Sport, he will also know that 71% of our services trade with Korea last year was delivered digitally.[This section has been corrected on 11 March 2024, column 2MC — read correction] (Correction) We need to upgrade the deal to make sure that it reflects modern, digital trade as well. Both countries are making good progress in the negotiations.