MEXICO CITY — President Lee Jae-myung and Mexican President Claudia Sheinbaum held a summit on the 24th and settled the outstanding issues in seven years of negotiations to revise their investment protection agreement. The two countries signed a total of 16 memorandums of understanding, including MOUs covering seven areas such as the economy, finance, education, culture, tourism, development and customs, and separately adopted a declaration on artificial intelligence cooperation.
Wi Sung-lac, director of the National Security Office, outlined the results of Lee's state visit to Mexico at a briefing at the press center in Mexico City. "The two leaders agreed to strengthen the institutional foundation for expanding trade and investment in response to changes in the global trade environment," Wi said. "In particular, they settled as a package the main sticking points in negotiations to revise the investment protection agreement, which had continued for seven years." He said the revised agreement "recognizes the legitimate regulatory authority of the host country of investment while strengthening substantive protections for Korean companies, such as the recovery of invested funds and compensation for losses."
The settlement also adds a provision to block indiscriminate lawsuits by paper companies and improves dispute settlement procedures. "We have also established a basis for guaranteeing the transfer of investment funds even in a foreign exchange crisis and for protecting investors from excessive tax measures," Wi said. He added that "the export-import banks of the two countries agreed to newly establish a relending facility worth $100 million, and they will also strengthen the sharing of information on intellectual property protection and illegally cleared goods."
The two sides also agreed to expand cooperation on energy supply chains. The leaders took note that Korean companies have secured an additional 13 million barrels of Mexican crude oil since May, and agreed to continue cooperating to build a stable crude supply chain. The two countries also set advanced industries — AI, digital, aerospace and defense — as a new axis of cooperation. The leaders agreed there is significant potential for cooperation in the new industrial fields targeted by Korea's strategic industries and by Plan Mexico, Mexico's national development strategy.
"On AI, the two leaders adopted a declaration on AI cooperation containing the principle that AI should not be the privilege of a few but a universal benefit shared by all," Wi said. "In 2028, when Mexico chairs the Asia-Pacific Economic Cooperation forum, the two countries will jointly review the implementation of the APEC AI initiative."
In aerospace, the two sides agreed to build a comprehensive cooperation framework that goes beyond simple aircraft exports to cover local production, maintenance, supply chain participation, financial support and workforce training. They also discussed ways Korea can contribute to Mexico's military modernization, laying a foundation to expand defense cooperation.
Cultural and people-to-people exchanges will also be strengthened. "The two countries will pursue the establishment of a K-Culture Center in Mexico where visitors can attend K-pop performances and experience Korean culture, and will expand joint content production and talent development," Wi said. A joint working group will be formed within this year to create a government-to-government scholarship program.
The two sides also agreed to strengthen cooperation between law enforcement authorities against transnational crime such as voice phishing and investment fraud, and to expand cooperation in agricultural technology including farm machinery and fertilizer. On anti-corruption cooperation, a working group will be formed in the first half of next year to discuss specific tasks.
Citing the results of the trip, Wi said Mexico "is a strategic hub linking North and South America," adding that "through this state visit, we held discussions on building the institutional foundation to expand trade and investment and strengthen industrial cooperation." He said the visit "is also expected to contribute to Korean companies' entry into Latin America and to expanding supply chain bases for developing global markets, including North America."
