Tariff-free access secured as exports and jobs set to grow across Wales

THE UK has agreed a wide-ranging free trade deal with South Korea which ministers say will safeguard thousands of jobs, increase exports from Wales, and unlock hundreds of millions of pounds in new opportunities for British services firms.

The agreement — announced on Monday (Dec 15) in London by Trade Minister Chris Bryant and his Korean counterpart Minister Yeo Han-koo — is the fourth major trade deal struck by the UK Government this year, following agreements with the EU, the US and India.

Welsh exporters stand to benefit

Wales already sells more than £280 million worth of goods to South Korea each year, including over £227 million in machinery. Power-generating machinery exports have risen by more than 50% since 2023.

The Welsh automotive sector is also expected to gain from the agreement. Exports of road vehicles from Wales to South Korea were valued at £3.7 million in 2024, up 57% on the previous year.

Across the UK, services firms stand to gain approximately £400 million, helped by improved access to South Korea’s expanding financial market — the second largest importer of UK services after the United States.

Tariff-free access locked in

The deal preserves tariff-free access for 98% of tariff lines, shielding around £2 billion worth of UK exports from significant tariff hikes that had been looming. It also modernises digital trade rules by legitimising e-contracts and other electronic processes, making it faster and cheaper for Welsh and UK companies to operate in Korea.

Key industries — including automotive, pharmaceuticals, and food and drink — retain protections designed to help firms secure supply chains and expand internationally.

Prime Minister: “A huge win”

Prime Minister Keir Starmer welcomed the deal as a major step forward for economic growth.

“This is a huge win for British business and working people and marks our fourth major agreement in 2025 after the EU, India and US,” he said.
“Korean culture is already hugely influential here. Making trade easier will support jobs and growth felt across the whole country.”

Trade Minister Chris Bryant said the agreement would “take our relationship to the next level” and unlock “hundreds of millions in opportunities”.

“This secures the UK as a global leader in digital trade while giving cast-iron protections to key industries,” he added.

“Landmark deal” for Welsh businesses

Secretary of State for Wales Jo Stevens said the agreement would help Welsh exporters grow and create new jobs.

“It further unlocks the immense potential for growth across Wales’s key industries, including machinery businesses, by providing better access to a growing market,” she said.
“This is a real boost for the UK economy and will put more money back in the pockets of businesses and consumers across Wales.”

What the deal includes

According to the UK Government, the agreement will:

• Secure permanent tariff-free access across 98% of tariff lines (matching EU terms).
• Create new export opportunities as South Korea’s import market is forecast to grow by 26% by 2035.
• Update “rules of origin” to simplify tariff-free trade for automotive and pharmaceutical sectors.
• Strengthen access to Korea’s expanding financial market, building on £1.1 billion in UK financial and insurance exports last year.
• Streamline customs processes and reduce non-tariff barriers for SMEs, which make up over 99% of UK businesses.

“Golden age” of UK–Korea relations

The UK Government says the agreement signals a “new golden age” in bilateral trade, with Virgin Atlantic launching daily flights between London and Seoul in 2026.

It follows several high-profile trade announcements this year:

• The UK-India trade deal signed in July, projected to add £4.8 billion to the economy.
• A May agreement with the United States, which accompanied £150 billion in investment commitments from US companies.
• A revised trade agreement with the EU, expected to add £9 billion to the economy by 2040.

FORMAL plans to turn Tenby’s former Poundland and Royal Playhouse cinema to a retro computer gaming lounge have been submitted to the national park.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby’s branch on White Lion Street.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a change of use of the former Gatehouse (Playhouse) Cinema, most recently used as a Poundland store to a retro gaming lounge.

This follows a recently submitted application for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former cinema, ahead of the wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front façade.

A supporting statement for the change of use scheme through agent Asbri Planning Ltd says: “The proposed retro gaming lounge will be inviting to all ages, including families, groups and individuals with no age restriction. The applicant has several similar premises across other parts of the UK and operates under a successful business model.

“This includes a fee being payable to enter the premises which thereby grants access to unlimited game time to all consoles/arcade machines. There will be no slot or coin-based reward games, so the proposal would not be considered/classed as gambling. The site will provide snacks and drinks (including alcohol) which will be canned/bottled drinks.

“The sale of such drinks would be ancillary to the overall function of the premises, and a separate alcohol licence will be submitted, accordingly.”

It adds: “The development would provide a much-welcomed addition to White Lion Rd which will improve the vitality and viability of the immediate area by promoting greater levels of footfall within the area and introduce greater variety to the shopping frontage at this location.”

It proposes opening hours of 10-10, Sunday to Thursday, and to 11pm on Fridays and Saturdays.

The application, and the related signage scheme, will be considered by park planners at a later date.

Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.

The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.

INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.