President Lee Jae-myung has expressed his determination to revive the Korea-Mexico Free Trade Agreement (FTA) negotiations, which have been effectively stalled since 2008. He proposed strengthening the institutional framework for economic cooperation between the two countries, including the conclusion of a social security agreement and enhanced investment protection measures.
During his state visit to Mexico, President Lee stated in an interview with the local newspaper El Universal on September 23 that "it is time to establish an institutional framework that matches our robust economic cooperation." He emphasized the need to resume Korea-Mexico economic agreement negotiations, advance the social security agreement, and strengthen investment protection.
Lee's call to "resume economic agreement negotiations" is interpreted as a push to restart the long-stalled FTA talks. This aligns with discussions from last month’s meeting between the foreign ministers of both countries, where the South Korean government proposed a package that included resuming FTA negotiations, revising the investment protection agreement, and concluding the social security agreement.
According to the Ministry of Foreign Affairs and KOTRA, the Korea-Mexico trade negotiations began in 2006 with a Strategic Economic Complementation Agreement (SECA) that had a lower level of openness than an FTA. However, disagreements over market access led to a temporary suspension after the third round of negotiations in June of that year.
In 2007, the two countries elevated the SECA to an FTA and resumed negotiations. They held the first round of talks in Mexico City in December of that year and the second round in Seoul in June 2008. However, Mexico was unable to enter discussions on product concessions due to domestic issues, and the planned third round of negotiations did not take place due to a cautious attitude from the Mexican industry.
In March 2022, the two countries declared the resumption of FTA negotiations after 14 years, but substantial follow-up talks did not materialize. KOTRA assessed that while discussions for the FTA were resumed, they subsequently fell into a deadlock. The Ministry of Trade, Industry and Energy also classified the Korea-Mexico FTA as "negotiations that have been stalled since 2022" and stated it would continue high-level consultations for a prompt resumption.
Mexico is South Korea's largest trading and investment partner in Latin America and a key hub for entering the United States-Mexico-Canada Agreement (USMCA) supply chain. As Mexico has increased tariffs on countries without an FTA starting this year, there are growing demands to improve the price competitiveness and local business conditions for South Korean companies.
KOTRA's trade office in Mexico City found that among the 1,463 items subject to Mexico's tariff increase, 23 overlap with the top 50 items imported from Mexico, accounting for approximately 20.3% of the import value of those items, which include chassis, auto parts, refrigeration equipment, and hot-rolled steel sheets.
President Lee emphasized that "Mexico represents more than just a production base for Korean companies" and is a "key strategic platform for entering the North American and global markets." Currently, about 500 South Korean companies operate in Mexico, having invested approximately $13.3 billion and created 150,000 jobs. He noted that since the establishment of a strategic partnership in 2005, South Korean investment in Mexico has increased 26-fold.
Promising investment sectors include semiconductors, aerospace, and electric vehicles. President Lee stated, "By combining Korea's technology and manufacturing capabilities with Mexico's talent and solid industrial base, we can create new growth opportunities together."
In the defense sector, he mentioned that if Mexico's Air Force proceeds with its fighter modernization project, Korea's FA-50 could provide a foundation for mutually beneficial cooperation based on performance and cost competitiveness, potentially leading to technology transfer and local production in the long term.
He also proposed joint responses to transnational crime, stating, "To tackle transnational crimes such as online fraud, human trafficking, and drug smuggling, we need to strengthen cooperation between our public safety authorities," and called for expanded collaboration in infrastructure and technology for citizen safety.
In the space sector, he suggested that both governments pursue joint projects focused on satellites and launch vehicles while enhancing connections between businesses and research institutions. He also advocated for expanding joint pilot projects and technological cooperation in artificial intelligence (AI) to build a responsible AI ecosystem centered on people.
Regarding energy supply chains, he noted, "In response to instability in the Middle East, we closely consulted with Mexico to diversify our crude oil supply sources, which has allowed us to expand our crude oil imports," reaffirming the trust and friendship between the two countries, as the saying goes, "You can tell a true friend in difficult times."
In the cultural sector, he proposed establishing a system for joint production of content and arts, as well as training talent, and plans to create a 'K-Culture Center' where the Mexican public can experience various aspects of Korean culture.
* This article has been translated by AI.
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