INTERVIEW UK braces for Brexit vote next week

'London can help Seoul's push to shift away from nuclear energy'

By Yi Whan-woo

Uncertainty is growing over the United Kingdom’s relations with other countries, as the British Parliament appears divided over whether to vote for or against Brexit plan next week.

Mark Field, minister of state for Asia and the Pacific at the U.K. Foreign and Commonwealth Office, says the deal will hopefully pass, but he also underscored the need for business measures to mitigate a possible no-deal.

Field, who visited South Korea from Jan. 4 to 5, hoped his trip showed his government’s “commitment to the U.K.-South Korea relationship.” The visit was his third to Korea since 2017.

“It is a long and enduring relationship and as we leave the EU, we are determined to build on our ties with regional superpowers like South Korea,” he said during an interview at the British Embassy in Seoul on Jan. 4.

Field pointed out that annual trade volume between the two countries had reached 14 billion pounds and that it would be important to continue South Korea’s free trade agreement (FTA) with the U.K.

South Korea was the only Asian country to sign such an FTA through the European Union.

Regarding South Korea’s push to move away from nuclear energy, Field underscored that the U.K. had great expertise in decommissioning nuclear power plants and that two sides could work together.

He said nuclear energy still had an important role to play in the transition to a low carbon economy.

After stopping in Seoul, he visited Ulsan and Busan, meeting senior government officials and political leaders.

Among them were First Vice Foreign Minister Cho Hyun, Deputy Director for National Security Nam Gwan-Pyo, ruling Democratic Party of Korea floor leader Hong Young-pyo and Ulsan Mayor Song Chul-ho.

He discussed business opportunities, particularly in the energy and offshore wind-related sectors.

In Busan, he visited the U.N. Memorial Cemetery Korea (UNMCK) to remember the sacrifice of more than 1,100 British military personnel who died during the 1950-53 Korean War.

The following is the Q&A.

Q

What are the possible roles for the U.N. Security Council, which includes the U.K., to accelerate the denuclearization dialogue?

A

The U.K. is one of only five permanent members of the U.N. Security Council, and the only one that spends both 2 percent of our GDP on defense and 0.7 percent of GNI on development.

We have played a prominent role — through the U.N. and the EU — in bringing sanctions against North Korea to stop its pursuit of nuclear weapons.

We support the ongoing dialogue between North and South Korea, as well as between North Korea and the U.S. Successful negotiations on the DPRK’s nuclear and weapons program would lead to stability in a region that is home to thousands of British Nationals and important U.K. interests, which is vital to global economic growth.

We fully support President Moon Jae-in’s role in working toward a sustainable peace on the Korean Peninsula. We welcome the outcomes of the third inter-Korean summit last year that include important steps to reduce military tension and build confidence.

International pressure, and specifically a robust set of U.N. sanctions, has played a key role in bringing about recent developments. Until North Korea takes concrete steps towards complete, verifiable, and irreversible denuclearization, sanctions must continue to be strictly enforced.

We will continue to support the United States in its efforts, and work closely with our international partners for a diplomatic solution. As a recognized nuclear state under the NPT, and a permanent member of the U.N. Security Council, the U.K. has the technology and capacity to support denuclearization in North Korea.

The vote on Brexit is scheduled in the third week of January. Do you think Prime Minister May's proposal will pass? If it doesn't pass, what's the next procedure?

The first thing I would say is that I very much hope it does pass. I think Mrs. May has worked tirelessly to get a bespoke deal from the EU. I believe she has put forward a pragmatic deal, and I'm confident that the U.K. Parliament will understand that and support the deal, and that MPs on both sides will recognize that it's better to have a deal than a no-deal outcome.

What I would say in the context of Korean businesses is that there is a chance that a deal will not pass. It is therefore very much in the interest of Korean business that we have a continuity agreement signed as soon as possible to mitigate against a no-deal outcome.

Demand for a second referendum is high. Former prime ministers also insist on the need for a second referendum, but is it feasible?

My view is that we had a referendum, and that it is now the job of the politicians and government to deliver upon the decision of the people. I think another referendum at this stage would still be a very close-run thing, as what the referendum in June 2016 did not entirely resolve was the very deep divisions over this issue. Another referendum would only serve to further divide ? and lead to more business uncertainty. This wouldn't be in the U.K., or Korea's, best interests.

Are there any specific areas that you?re expecting will grow further because of the U.K.-Korea FTA after Brexit?

Korea is the only Asian country with which the U.K. has an in-force FTA through the EU, so replicating it is obviously a top regional priority for the U.K. government. As the U.K. prepares to leave the EU, we are committed to a smooth transition that maintains continuity of our trading arrangements, and ensures our governments and business continue to work together for growth.

As I’ve said previously, U.K.-Korea trade is worth almost 14 billion pounds a year, and there is huge potential for this to grow further, in particular in renewable energy sectors such as offshore wind.

The U.K. and Korea have strong and established trading relationships across a range of sectors — obviously automobiles and pharmaceuticals, but also increasingly importantly in the technology sphere.

What we need to do is have an eye on the future; to think ‘where will my business be in five, 10, or 15 years’ time. I’m always encouraged when I meet Korean businesspeople. They know the U.K. is a reliable and stable business partner. They know that Britain is a good place to do business — actually the U.K. was ranked top of the Forbes ‘Best Countries for Business 2019,’ despite any uncertainty surrounding Brexit.

And British businesses know that Korea is a good place to do business. We need to encourage all our business to continue to work together and find new areas of cooperation, and that’s very much the message I will be delivering during my time here.

Korea has mixed views on nuclear power plants. What is the U.K. government's position on this?

First of all, on the Korean government?s decision to close down nuclear power stations: The U.K. has great expertise in decommissioning nuclear power plants, and this is very much an area where we can work together.

As for the U.K. position, we believe nuclear still has an important role to play as part of a diverse energy mix as we move to a low-carbon economy. However, it is important that in each case projects must provide value for money for consumers and taxpayers.

Do you have any comment on Hitachi's decision to withdraw from building a nuclear power plant on the Isle of Anglesey?

All proposed new nuclear projects in the U.K. are led by private sector developers, and while the government has engaged regularly with the companies involved, this is entirely a commercial decision for Hitachi.

How do you think North Korea?s denuclearization will affect trade relations in the Asia-Pacific region?

Around the world, time and time again we have seen that peace and stability lead directly to prosperity and economic growth. That is why I would echo the comments made this week by President Moon Jae-in; that once complete denuclearization and lasting peace are settled on the Korean Peninsula, a new era of peace and prosperity will begin.

International pressure, and specifically a robust set of U.N. sanctions, has played a key role in bringing about recent developments. That is why it is so important that sanctions must continue to be strictly enforced until North Korea takes concrete steps toward complete, verifiable and irreversible denuclearization.