South Korea and Morocco Begin CEPA Negotiations to Strengthen Economic Ties

Yeo Han-goo, the head of South Korea's Trade Negotiation Bureau, visited Morocco and agreed to establish a working group to initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the two countries. The South Korean government aims to expand economic cooperation with Morocco, a key hub in North Africa, to enhance its companies' access to the African market.

The Ministry of Trade announced that Yeo met with Omar Hjira, Morocco's Minister of Trade, on June 11 and 12 to discuss ways to boost trade and investment and expand economic cooperation.

Both sides agreed to create a director-level working group to clarify the CEPA negotiations, coordinating the agenda and scope to facilitate prompt discussions.

CEPA is a trade agreement that builds on a free trade agreement (FTA) while allowing flexibility in the level of openness and including cooperation in various fields such as investment and industrial collaboration.

Morocco is strategically located as a gateway connecting Europe, the Americas, the Middle East, and Africa, and it is one of the African countries that has signed free trade agreements with major economies like the United States and the European Union. The South Korean government views Morocco as a strategic base for its companies to enter the North African and European markets and is pushing for expanded cooperation.

During the meeting, Yeo reviewed the progress of major projects by South Korean companies, including the establishment of a local factory for electric trains by Hyundai Rotem and an investment project for a lithium refinery by LG Energy Solution. He also requested support and cooperation from the Moroccan government to ensure the smooth progress of these projects.

The two sides exchanged views on the potential for expanding cooperation in various industrial sectors, including shipbuilding and defense.

Yeo held a meeting with South Korean companies operating in Morocco to listen to their challenges related to customs, logistics, clearance, and taxation. The Ministry of Trade plans to actively address the issues raised by these companies through bilateral consultation channels.

Additionally, considering the recent increase in interest and demand for Korean cosmetics in Morocco, Yeo visited a local specialty store for Korean cosmetics to assess the distribution and sales status of K-beauty products and identify any challenges. The government is also looking for ways to support South Korean companies in expanding their presence in the local market.

Yeo stated, "Morocco is an important gateway for our companies to enter the African market, and we will strengthen cooperation between the two governments to support stable trade and investment activities for our businesses."