UK concludes trade talks with South Korea

Our trade team has summarised the key parts of the FTA that are relevant to farming:

Goods market access

The continuity agreement that the UK Government agreed with South Korea in 2021, which broadly mirrored the terms of the South Korea-EU agreement, removed tariffs on both sides for most products across the economy. The revised agreement builds upon this. 

The NFU understands that for agri-food products, all tariffs remain unchanged from the 2021 agreement. This means that, with a few limited exceptions (milk powders, garlic, sweet bell peppers, unhulled barley, and rice) all British agricultural exports will be able to continue being exported to South Korea tariff-free, or will be able to export tariff free in the future depending on the original agreement. 

Similarly South Korea will, with a few limited exceptions (fresh and chilled tomatoes, oranges, and rice), be able to export agricultural products tariff-free to the UK. 

South Korea is a net importer of agri-food products. Domestic production is constrained by limited agricultural land availability and meets only 46% of the country's food demand, with reliance on imported products to fulfil its food and agricultural needs.

Geographical indications

GIs (geographical indications) are food, drink and agricultural products with a geographical connection, or products that are made using traditional methods that can be registered and protected as intellectual property.

The UK has more than 70 GIs on agricultural products such as West Country Farmhouse Cheddar, Welsh lamb or Stilton cheese. Recognition of GI status within the FTA ensures that the heritage and quality of a UK product is protected in South Korea. 

The UK has secured an agreement from South Korea to initiate the process for recognising and protecting additional UK Geographical Indications under the upgraded FTA. This is an improvement, as the current agreement only provides GI protection for Scotch Whisky. However, the government has not yet announced which GIs will be recognised and subject to protection in South Korea. 

The NFU supports maintaining a system that protects all current UK GIs to safeguard and promote high value products. 

SPS standards 

Under the updated agreement, all imports from South Korea will still have to meet the same UK food safety and biosecurity standards. Additionally, the UK will retain its regulatory autonomy to set its own, independent standards, ensuring it can continue to uphold high levels of protection for human, animal and plant health. 

The agreement includes an upgraded article on 'Adaptation to Regional Conditions' (regionalisation), which will help maintain trade flows and facilitate the safe movement of goods where disease or pest outbreaks are present but safely managed (for example British poultry products during avian influenza outbreaks).

The government has stated that the chapter includes an expanded article on animal welfare, which represents South Korea’s most comprehensive language on this issue in any trade agreement to date. It also includes South Korea’s first-ever commitment on anti-microbial resistance in a free trade agreement. While these are positive steps, in previous FTAs, the language associated with these commitments has often been based on cooperation and not legally enforceable. 

Rules of origin

Rules of origin set out the criteria that a good must meet to be recognised as 'originating' (ie, British or South Korean) and therefore benefit from the preferential tariffs agreed under this deal. 

The updated rules of origin are more facilitative and could allow for greater flexibility in sourcing components from third countries for sectors such as processed food, automotive, and pharmaceuticals. 

Importantly, the chapter preserves origin requirements for primary agricultural products, safeguarding the interests of British farmers.

This appears to be a mixed outcome. The NFU believes that only goods which genuinely originate in either country (or groups of countries) party to an FTA should qualify for preferential treatment. In the context of the South Korean FTA, we supported an outcome on rules of origin which encouraged the use of domestically produced raw materials and did not incentivise the use of imports any more than today.

This consultation has now closed.

The NFU supports the government’s ambition to negotiate a new and more ambitious trade deal for the future.

We agree that removing and lowering remaining tariffs for UK exports of food & drink, making it easier for UK companies to do business with South Korea, and deepening our bilateral relationships in important shared policy areas, should all be key priorities and objectives of UK negotiators.

Rules of origin

The NFU believes that only goods which genuinely originate in either country (or groups of countries) party to an FTA should qualify for preferential treatment.

In this context, we support an outcome on RoO (Rules of Origin) which encourages the use of domestically produced raw materials and does not incentivise the use of imports any more than today.

Tariffs

The NFU believes that the mutual lowering and removal of tariffs for UK exports of food & drink, making it easier for UK companies to do business with Korean customers, as well as deepening our bilateral relationships in important shared policy areas, should all be key priorities and objectives of UK negotiators.

Environment and green growth

The NFU is clear that agri-food goods which are do not meet the legal minimum of UK production standards should not then be imported into the UK.

The NFU has set the ambition for UK agriculture to reach net zero by 2040 and believes the government should be using policy levers, including trade policy, to incentivise higher standards of production and climate-friendly farming models.

Animal welfare

The NFU believes that to enable and support a thriving British agriculture sector it is crucial that the UK’s future trade policy respects our high domestic production standards.

To do otherwise would contradict the government’s own stated commitment and would risk compromising our high animal welfare and environmental standards and would undermine British farmers.

Customs procedures

To ensure UK businesses can make the most of the opportunity the South Korean market presents, negotiators should seek to reduce barriers and streamline market access procedures.

NFU members can read the response in full: NFU members | Call for input – Trade with South Korea.

The NFU would like to hear opinions from members on trade deals with South Korea.

Before responding, you can read the member briefing which our team of experts have put together, detailing how any trade agreement will affect each sector. 

Meat and Dairy in particular pose significant opportunities, with the NFU identifying securing access for British Beef to South Korea as a priority. 

Read: NFU members | Trade deal with South Korea consultation

The NFU will be responding to the consultation, so any views submitted will feed into our response.

The UK and South Korea already have an Association Agreement in place from the UK’s time as part of the EU however this is based on text from 2011.

The DIT are now looking for input from relevant stakeholders on where changes or improvements could be made and what should be top of the agenda during trade talks with South Korea. 

They have therefore launched a consultation which members can respond to directly on the government's website: GOV.UK | Trade with South Korea: call for input.