The Ministry of Trade, Industry and Energy said it will hold a second round of official negotiations to upgrade the free trade agreement between South Korea and the Association of Southeast Asian Nations. Trade authorities also agreed to strengthen economic cooperation with Mexico and launch trade agreement talks, following the Korea-Mexico summit held on the 24th.
Government delegations from Korea and ASEAN will hold the second round of official negotiations in Singapore from the 28th through Oct. 1, the ministry said on the 27th. Park Keun-oh, director general for trade agreement policy at the ministry, will lead the Korean side, while Alpana Roy, a director general at Singapore's Ministry of Trade and Industry, will head the ASEAN delegation. The two sides agreed to revise the agreement about 20 years after the goods-focused FTA first took effect in 2007, and held a first round of talks in June this year.
The negotiations will focus on improving sector-specific rules across 13 working groups, including critical minerals and supply chains, digital trade, intellectual property rights and rules-of-origin verification procedures. The goal is to establish trade rules at a higher standard than existing frameworks that both sides belong to, such as the Regional Comprehensive Economic Partnership.
"Through these negotiations, we will do our utmost to reflect the latest rules that match a changing trade environment, including digital trade, and to strengthen supply chain cooperation in areas such as critical minerals, so as to build an institutional foundation that allows our companies to expand new business opportunities in the ASEAN market," Park said.
The government is also deepening economic cooperation with Mexico. Trade Minister Kim Jung-kwan signed an "Economic, Industrial and Resources Cooperation Initiative" with Mexican Economy Minister Marcelo Ebrard on the 24th, with the leaders of both countries in attendance. The two countries plan to set up a joint committee to implement the initiative and discuss cooperation on minerals and resources as well as improvements to the business environment. They also agreed to strengthen cooperation between the Korea Trade-Investment Promotion Agency and the Mexican Economy Ministry's trade and investment unit to promote trade and investment.
In a separate bilateral meeting with Ebrard, Kim stressed the need for a trade agreement between the two countries. Kim noted that Mexico's recent tariff increases on countries without free trade agreements have hurt Korean companies and reduced incentives for additional investment in Mexico, adding that a trade agreement could elevate bilateral economic cooperation to include future industries and supply chains.
The two sides agreed to launch a "joint benefits study" analyzing the potential gains and ripple effects of a trade agreement, and to continue discussing specific cooperation measures through the new joint committee and working groups.
The ministry and the Korea Chamber of Commerce and Industry also held a Korea-Mexico Business Forum at the World Trade Center in Mexico City on the 25th. The forum drew President Lee and Ebrard, along with about 300 business leaders from both countries.
Companies and institutions from the two countries signed four memorandums of understanding on the sidelines of the forum. POSCO International, Korea Aerospace Industries and Mexico's Federación Mexicana de la Industria Aeroespacial signed a comprehensive cooperation MOU to develop the aerospace industry, while HS Hyosung Advanced Materials and the government of the Mexican state of San Luis Potosí signed an MOU on investment in a production base for industrial products. The Korea Chamber of Commerce and Industry and KOTRA each pledged to expand cooperation with Mexico's foreign trade council in the areas of economy and trade, and trade and investment, respectively.
The ministry and KOTRA also held a Korean Products Exhibition in Mexico City on the 24th and 25th to help domestic consumer goods companies expand into Latin America. A total of 59 Korean companies, or 82 including online participants, held 730 business meetings with 123 buyers at the event.
