Government to Resume FTA Negotiations with Mexico, Latin America's Top Trading Partner

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will engage in additional consultations to resume free trade agreement (FTA) negotiations with Mexico.

The Ministry of Trade, Industry and Energy announced on the 20th that Jeon Yoonjong, Director-General for Trade Negotiations, will hold a bilateral meeting with Luz Maria de la Mora, Deputy Minister of the Mexican Ministry of Economy, in Mexico City on the 21st (local time) to discuss the resumption of Korea-Mexico FTA negotiations.

Korea and Mexico initiated the 'Strategic Economic Complementation Agreement (SECA)', a preliminary stage before the FTA, in 2006, but negotiations were suspended in 2008 due to Mexico's passive stance. The two countries agreed to resume negotiations during the 2016 summit, and after trade minister meetings in August and October last year, and deputy minister-level consultations in November, they are currently proactively pursuing the resumption of negotiations.

Mexico is Korea's largest trading partner among Latin American countries. Major export items between the two countries include automobiles, steel, flat panel displays, semiconductors, and synthetic resins from Korea, and crude oil, minerals, agricultural and livestock products, and auto parts from Mexico. Considering Mexico's high tariff rates and the mutually complementary trade structure between the two countries, it is expected that the export conditions for Korean industries will improve upon the conclusion of the FTA.

Furthermore, with the implementation of the United States-Mexico-Canada Agreement (USMCA) and the reorganization of global supply chains, completing a trade network encompassing both North and South America is expected to benefit the export environment.

Director-General Jeon stated, "Mexico is an important partner country for us in pursuing mega FTAs such as joining the Pacific Alliance (PA) as an associate member and joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). We will focus on promptly resuming bilateral FTA negotiations."