Scotch to benefit from UK-South Korea FTA
The UK and South Korea have finalised a free trade agreement (FTA) that will enhance Scotch whisky’s access to the market.
Announced yesterday (15 December), the FTA is the fourth trade deal the UK government has agreed this year following agreements with India, the EU and the US.
According to the UK government, this latest agreement will boost exports, support thousands of jobs and grow the economy.
The deal is expected to grow UK services exports by £400 million (US$537.2m), including improved access to South Korea’s financial market.
The FTA will protect the automotive, pharmaceutical and food and drink industries in the UK, the government noted. It has also resulted in continued and permanent tariff-free access across 98% of products that were subject to tariffs.
The deal will legitimise the use of e-contracts and other digital technology making it quicker, cheaper and easier for UK firms to sell to Korea.
UK trade minister Chris Bryant said: “This trade deal will take our relationship to the next level, with hundreds of millions of pounds and vast opportunities unlocked for businesses.”
The UK and South Korea signed a continuity trade agreement in 2019, based on the previous deal the UK had when it was part of the EU. This new FTA replaces the continuity deal.
Trade body the Scotch Whisky Association (SWA) welcomed the UK-South Korea FTA, which provides “important improvements” to the existing deal.
SWA’s interim international director, Emily Weaver Roads, said: “Located in Scotch whisky’s largest regional market by value, the reduction of trade barriers in the Republic of Korea will further enhance Scotch whisky’s access to an important market, especially for single malts.
“The deal will improve the efficiency of our supply chains and make it easier for our members to access the market, ensuring consumers benefit from increased choice of Scotch whiskies.
“We will continue to engage with the UK government to foster future growth for the UK’s largest food and drink export through the implementation of the deal and protecting the category in Korea.”
Asia Pacific was the most valuable Scotch whisky export region last year, with exports worth £1.57 billion (US$1.96bn). This showed a 12.4% decrease on 2023, but a 26.9% leap compared with 2019.
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