WPI have said that the UK could secure its first trade agreement outside the bloc before 2020, but only if it focuses on Seoul and other nations who would be more receptive. The WPI also recommended Brazil, as well as the US to be good trading partners.
UK Prime Minister Theresa May has already started discussing trade with countries outside the European Union.
May visited US President Donald Trump in January, a state visit during which trade between the two nations was top of the agenda, alongside NATO. The PM was able to gain commitment from Trump towards the military alliance, as well as build relations that would hopefully, lead to mutually beneficial deals.
WPI economic analysis of the top #Brexit trade deals available to U.K is now published. South Korea came out clear winner https://t.co/jNZo5qcgfm
— Sean Worth (@SeanWorthUK) January 30, 2017
However, the US is just the start. The WPI have said that Britain needs to put South Korea top of the list because they have made it clear that they want to trade with the UK.
Sir Ivan says EU/South Korea free trade deal took 3.5 years from conception to completion. No doubt UK FT deals outside EU will be quicker.
— Patrick Wintour (@patrickwintour) February 1, 2017
But the WPI study warned that the civil service could "be stretched to breaking point" unless it prioritizes its negotiations.
"It is not impossible for the UK to seal a bilateral deal with a non-EU country before the next general election," Matthew Oakley, director of WPI Economics and a former Treasury official, said in a recent interview.
EU has 40+ free trade agreements. Will the UK want to inherit those arrangements? Take EU-South Korea, 1432 pages https://t.co/anjEoYJ6BS pic.twitter.com/JLfHqvhkvL
— Peter Ungphakorn (@CoppetainPU) 1 February 2017
"In order to do so, the Prime Minister and her colleagues must prioritize which countries offer the most potential. Exploring the possibility of negotiating 12 separate deals is one thing, but the civil service will be stretched to breaking point if they are not given a list of priority countries to target," Oakley said.
"It has already negotiated a free trade deal with the EU so has a foundation to work off. It imports increasing amounts of business and financial services. And it has a track record of agreeing bilateral deals in a relatively short period of time," he added.
The WPI research indicates that the UK must look far and wide if it is to establish strong trade deals with countries outside the bloc.
These are the countries the UK is talking to about a trade deal
— Ian Silvera (@ianjsilvera) January 19, 2017
Australia
India
New Zealand
South Korea
Norway
China
Gulf States
South Korea and Australia have expressed an interest as well and this could be the life line that Theresa May needs right now, if she is to convince the country that a "hard" Brexit is the only way forward.
