British exporters keen on investing in the Far East will be given the opportunity to grow their business on Asian soil when the EU / Korea Free Trade Agreement comes into force today.
This landmark deal is the first of its kind between the EU and an Asian market. It will reduce tariffs on 97% of all goods and services and is expected to result in £16 billion worth of savings across the EU.
Prime Minister David Cameron said:
"This landmark EU-Korea Free Trade Agreement marks a significant development in the UK's bilateral relationship with Korea and represents a huge opportunity to increase trade between our two countries, to the benefit of business, consumers and economic growth.
"Strong trade policies and strong trade outcomes are crucial for creating jobs and building sustainable growth in the UK. This Agreement gives British business, large and small, an unparalleled opportunity to boost exports to one of Asia's fastest growing economies, and I hope that they will rise to the challenge.
"Having attracted some £2.25 billion of Korean investment in 2010 - more than double that of any other European country - I hope that this Agreement will result in even more Korean businesses choosing the UK as a platform to grow. It is essential that we get the message out that Britain is open for business."
Ambassador of the Republic of Korea, Choo Kyu Ho, said:
"The Korea-EU FTA will present both countries with a number of significant opportunities for trade and development. Currently, the UK is Korea's number one investment destination in Europe. By lowering tariffs, harmonizing regulatory rules, and enhancing IPR (Intellectual Property Right) protection, the FTA will create further export opportunities for the entrepreneurs, service providers, investors and farmers of the UK.
"Korea's competitiveness - when coupled with the UK's capabilities - can generate significant benefits for both our economies and expand the market for both the UK and Korea. The FTA is expected to bring a minimum of £500 million of benefits a year to British businesses alone, with a total of 19.1 billion Euros a year for the EU."
Business Secretary Vince Cable said:
"During my recent visit to Korea, I was very encouraged to meet many British firms who are already successfully exporting to and investing in this market.
"Korea is set to make the tenth largest contribution to world growth over the next five years, and will become one of the most attractive export destinations globally. British companies that are serious about growing their business internationally should seize the opportunities that have been created by the Free Trade Agreement, as there has never been a better time to engage with the Korean market."
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