The South Korean government is set to resume negotiations for the Korea-Mercosur Trade Agreement (TA), which have been on hold for over five years, coinciding with President Yoon Suk Yeol's state visit to Brazil. This marks a significant step in enhancing supply chain and trade cooperation with Brazil, the largest economy in Latin America.
The Ministry of Trade, Industry and Energy announced on July 29 that the TA will be expedited during President Yoon's visit, and a private sector memorandum of understanding (MOU) was signed at the Korea-Brazil Business Roundtable. Additionally, a joint statement on cooperation in key and strategic minerals was issued, along with an MOU on industrial technology cooperation under the presence of the leaders.
During the summit, the two leaders agreed to announce the resumption of the Korea-Mercosur TA negotiations at the 69th Mercosur Summit in December. They have been discussing the need to advance negotiations since their first summit in February in Seoul.
To facilitate the smooth resumption and acceleration of the TA negotiations, both sides agreed to establish and operate a working-level consultative body. This body aims to explore market entry opportunities for mutual export items and enhance understanding of market sensitivities and key issues.
Cooperation on key minerals is also set to intensify. Minister of Trade, Industry and Energy Lee Chang-yang met with Brazil's Minister of Mines and Energy Alexandre Silveira in Brasília on July 27, where they announced a joint statement to strengthen cooperation in key and strategic minerals.
This joint statement marks the first instance where both governments have outlined their cooperation direction in the key and strategic minerals sector. It establishes a governmental framework for mineral resource cooperation with Brazil, the world's second-largest rare earth producer.
The joint statement identifies rare earths as a primary area of cooperation and outlines plans to expand collaboration across the entire mineral value chain, including local processing and refining, value creation, technology transfer and research and development, responsible mining, workforce training, and investments in midstream and downstream sectors.
Private sector cooperation on rare earth supply chains is also being pursued. POSCO International has signed an MOU with Meteoric Resources, which is developing a rare earth mining project in Caldeira, Brazil, to collaborate on rare earth off-take and financial support.
A Korea-Brazil Business Roundtable was also held in São Paulo, attended by 43 participants, including government officials and business leaders from both countries. Attendees emphasized the need for cooperation between Brazil, a resource-rich nation and the largest economy in Latin America, and South Korea, known for its advanced manufacturing capabilities.
During the event, a total of six MOUs were signed, covering areas such as joint industrial technology research and development, export and investment cooperation, AI-based epilepsy treatment innovation and digital health collaboration, meat supply chain cooperation, and civil aviation and aerospace collaboration.
In the industrial technology cooperation MOU, Minister Lee and Brazil's Minister of Science, Technology, and Innovation Luciana Santos shook hands. The Ministry views this MOU as a foundational framework for cooperation that extends beyond traditional trade to encompass supply chains, advanced industries, and biotechnology.
Minister Lee also held a separate meeting with Brazil's Minister of Development, Industry, Trade, and Services, Marcio Fernando Elias Rosa, to discuss cooperation between the two countries. He conveyed the challenges faced by South Korean companies, including steel tariffs, import quotas, local administrative and regulatory constraints, and infrastructure deficiencies, while requesting support from the Brazilian government.
Minister Lee emphasized, "This has become a valuable opportunity for both countries to create mutually complementary and beneficial growth opportunities based on each other's strengths. If South Korea's advanced technology is combined with Brazil's abundant resources, it will provide new opportunities for both countries' businesses to take a leap forward."
* This article has been translated by AI.
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