South Korea and Mexico are launching a joint study to analyze the effects of a potential trade agreement. This move is seen as a step to strengthen cooperation, given that no separate free trade agreement (FTA) has been established between the two countries. Additionally, a joint committee will be formed to discuss cooperation in minerals, resources, and supply chains, along with signing four memorandums of understanding (MOUs) between businesses and institutions to expand economic collaboration.
The Ministry of Trade, Industry and Energy announced on September 27 that, coinciding with President Lee Jae-myung's state visit to Mexico, the two countries have signed an 'Economic and Industrial-Resource Cooperation Initiative' and agreed to prepare for the commencement of trade agreement negotiations.
On September 24, Minister of Trade, Industry and Energy Kim Jeong-kwan and Mexico's Minister of Economy Marcelo Ebrard signed the initiative in the presence of both nations' leaders following a Korea-Mexico summit.
The two countries plan to establish a joint committee to implement the initiative, focusing on improving the business environment to protect the interests of companies operating in each other's markets. They will also enhance cooperation in trade and investment promotion between the Korea Trade-Investment Promotion Agency (KOTRA) and Mexican institutions.
Following this, Minister Kim met with Ebrard in Mexico City on September 25 to discuss the necessity of a trade agreement between the two nations. Since the beginning of this year, Mexico has imposed tariffs of up to 50% on strategic industrial items for countries without an FTA.
Currently, South Korea and Mexico have not established bilateral or multilateral FTAs. Minister Kim emphasized that the recent increase in tariffs by Mexico on non-FTA countries has worsened the business environment for South Korean companies operating there, highlighting the need for a stable trade and investment framework.
He also pointed out that South Korea could serve as a supply chain partner for Mexico's industrial development strategy, known as 'Plan Mexico.' Additionally, he requested solutions to issues such as customs delays, port congestion, inadequate power infrastructure, and challenges related to the Mexico-Brazil automotive agreement.
In response, both countries agreed to conduct a joint study to analyze the potential benefits and impacts of a trade agreement. This study will be discussed through the joint committee and working groups established during the summit.
Private sector cooperation is also set to expand. On September 25, the Ministry of Trade and the Korea Chamber of Commerce and Industry held a Korea-Mexico Business Forum in Mexico City, attended by around 300 business leaders from both countries. As a result of the forum, four MOUs were signed, including collaborations between POSCO International and Korea Aerospace Industries (KAI) with the Mexican Aerospace Industry Federation, and between HS Hysolid and the San Luis Potosí state government for investment in industrial product manufacturing.
During the Korea Excellent Products Exhibition held on September 24-25, 59 promising consumer goods companies from South Korea participated, along with 123 local buyers, resulting in 730 consultations.
Minister Kim stated, 'South Korea and Mexico have developed a close economic relationship centered on manufacturing and supply chains, and the mutual investment and trade between our companies continue to expand. We will actively support the government in broadening cooperation into promising future sectors such as advanced industries, energy, strategic industries, digital, and biotechnology, creating new opportunities for our economies to grow together.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.