Korea, Mexico sign economic cooperation initiative, launch trade study

South Korea's industry ministry said Monday that Seoul and Mexico City have signed an economic, industrial and resources cooperation initiative and begun a joint benefit study that will prepare the ground for possible trade talks.

The initiative was signed by Trade, Industry and Energy Minister Kim Jung-kwan and Mexican Economy Secretary Marcelo Ebrard on Sept. 24 in Mexico City, in the presence of President Lee Jae-myung and his Mexican counterpart after a bilateral summit. The two sides agreed to set up a joint committee to carry the initiative forward, covering cooperation on minerals and resources and improvements to the business environment for companies operating in each other's markets. They also plan to strengthen ties between the state trade agency KOTRA and Mexico's UIEG to promote trade and investment.

In a separate meeting with Ebrard on Sept. 25, Kim pressed the case for a trade agreement, pointing to recent Mexican tariff increases on countries without a free trade deal and arguing that they had hurt Korean companies and reduced the incentive to invest in Mexico. He also presented Korea as a reliable supply chain partner for the industrial development goals of Mexico's Plan Mexico.

Kim raised difficulties Korean businesses face locally, including customs delays and port congestion, insufficient power infrastructure and complications under the Mexico-Brazil automotive agreement known as ACE55, and asked Mexico's economy ministry for support. The two sides agreed to analyze the potential benefits and spillover effects of a trade agreement through the joint benefit study.

The ministry and the Korea Chamber of Commerce and Industry hosted a Korea-Mexico business forum on Sept. 25 at the World Trade Center in Mexico City, drawing about 300 business figures from both countries, including around 150 from Korea. Samsung Electronics President Roh Tae-moon, LG Chairman Koo Kwang-mo, LS Chairman Koo Ja-eun and Kia President Song Ho-sung were among the Korean attendees.

Four agreements were signed at a ceremony held in the presence of the two ministers. Posco International and Korea Aerospace Industries signed a comprehensive aerospace cooperation MOU with Mexico's FEMIA; Hyosung Advanced Materials signed an investment MOU with the government of San Luis Potosi for an industrial product production base; the chamber signed an economic and trade cooperation MOU with Mexico's COMCE; and KOTRA signed a trade and investment agreement with Mexico's COMCE.

"We will expand the horizon of cooperation to promising future fields such as advanced industries, energy and strategic industries, digital and bio, and the government will actively support efforts to create new opportunities for both economies to grow together," Kim said.

Alongside the forum, the ministry and KOTRA ran a Korean consumer goods exhibition in Mexico City on Sept. 24 and 25, connecting 59 Korean companies, 82 including online participants, with 123 buyers for 730 consultation sessions. Kim said the government plans to widen cooperation with Mexico beyond investment and supply chains into consumer goods, based on demand identified at the event.