Minister of Industry and Mexican Minister of Economy agree to launch ‘common interest study’

The Ministry of Trade, Industry and Energy announced on the 27th that it decided to strengthen economic cooperation with Mexico and prepare for the launch of a future trade agreement using President Lee Jae-myung's state visit to Mexico.

Immediately after the Korea-Mexico summit on the 24th, Minister of Trade, Industry and Energy Kim Jeong-kwan signed an 'Economic, Industrial and Resource Cooperation Initiative' with Mexican Minister of Economy Marcelo Ebrard in the presence of the leaders of both countries.

Both sides agreed that this initiative was an opportunity to strengthen economic cooperation between the two countries and agreed to cooperate to create mutual benefits.

To implement the initiative, a joint committee will be established to discuss ways to cooperate with minerals and resources and improve the business environment. To promote trade and investment, cooperation between the Korea Trade-Investment Promotion Agency (KOTRA) and the Trade and Investment Office (UIEG) of the Mexican Ministry of Economy will also be strengthened.

In a separate bilateral meeting with Minister Ebrard, Minister Kim emphasized the need for a trade agreement between the two countries.

Minister Kim pointed out that Mexico's recent increase in tariffs for countries that have not signed a free trade agreement (FTA) has not only harmed Korean companies, but also reduced the incentive to further advance into and invest in Mexico.

He then emphasized that Korea is a reliable supply chain partner for the Mexican government's development of strategic industries and said that the trade agreement will elevate the economic cooperation between the two countries to future industry and supply chain cooperation.

The two sides agreed to initiate a 'common interest study' to analyze the potential benefits and ripple effects of the trade agreement, and agreed to continue discussing specific cooperation measures through a new joint committee and working group.

Minister Kim also conveyed the difficulties faced by Korean companies in the local market due to delays in customs clearance, port backlogs, lack of power infrastructure, and automobile agreements between Mexico and Brazil, and requested active support.

The Ministry of Trade, Industry and Energy and the Korea Chamber of Commerce and Industry also held the 'Korea-Mexico Business Forum' at the World Trade Center (WTC) in Mexico City on the 25th, with President Lee, Minister Ebrard, and about 300 businesspeople from both countries in attendance.

Companies and institutions from both countries signed four business agreements (MOUs) to lay the foundation for cooperation.

POSCO International, Korea Aerospace Industries (KAI), and the Federation of Mexican Aerospace Industries (FEMIA) signed an MOU on comprehensive cooperation for the development of the aerospace industry, and HS Hyosung Advanced Materials and the government of San Luis Potosi, Mexico, signed an MOU on investment in an industrial product production base.

The Korea Chamber of Commerce and Industry and KOTRA promised to expand cooperation in the fields of economy, trade, and investment with Mexico's Foreign Trade Commission, respectively.

Minister Kim said, "With the business forum and the signing of the MOU, the government will actively support the two countries to expand the horizon of cooperation to future promising fields such as high-tech industry, energy and strategic industries, digital, and bio, and create new opportunities for the two countries' economies to grow together."

The Ministry of Trade, Industry and Energy also held the 'Korea Excellent Product Exhibition' with KOTRA on the 24th and 25th in Mexico City for domestic consumer goods companies to advance into Central and South America, and 730 consultations were held with 59 domestic companies (82 including online) and 123 buyers.