MEXICO CITY — President Lee Jae-myung, on a state visit to Mexico, told a business forum on the 25th that "a crisis is an opportunity," addressing the United States-Mexico-Canada Agreement that has emerged as a pressing concern for companies in both countries.
The USMCA is a free trade agreement among the United States, Mexico and Canada that grants tariff benefits within the region to products meeting North American content requirements. As Washington presses for tighter rules of origin, including greater use of North American parts and reduced reliance on components from outside the region, concerns have grown that Korean companies operating in Mexico could face higher costs and greater supply chain uncertainty.
Speaking at the Korea-Mexico Business Forum held at the World Trade Center in Mexico City, Lee said, "Uncertainty in the North American trade environment, including the USMCA, is a clear challenge." He added, "But if companies from both countries join hands and pool their strength, this can also become a prime opportunity to gain an early lead in global markets." He said he hoped the two countries' firms would "organically combine and strengthen Mexico's excellent manufacturing base and local parts ecosystem with Korea's advanced technological competitiveness, and expand together beyond North America into world markets."
To break through the difficulties, Lee reaffirmed the need for a Korea-Mexico trade agreement. "The two countries have not moved forward to a comprehensive trade agreement," he said. "At a time when uncertainty in the global trade environment is thicker than ever, I believe we need to strengthen the institutional foundation more solidly so that companies can expand their businesses with confidence."
A senior Presidential Office official accompanying Lee on the trip had earlier explained that for a bilateral trade agreement to lead directly to a resumption of free trade agreement negotiations, the USMCA — currently under renegotiation — would first have to be sorted out. "It is a little early to push for an FTA now," the official said. "We could also consider a Comprehensive Economic Partnership Agreement, which is a step below an FTA, or an even lower form of complementary trade framework."
Lee also stressed the need to broaden cooperation into future industries and energy. "Building on the success the two countries have solidly built in traditional manufacturing, we should boldly widen the scope of cooperation not only to future industries such as bio, healthcare and beauty, but also to areas of digital innovation such as energy, power and infrastructure," he said.
He went on to note that "Korean companies are already investing in AI data centers, power systems and electric vehicle production facilities in Mexico," and that they are "also working with Mexican companies on energy projects such as low-carbon and methanol initiatives."
On cultural and creative industries, Lee said, "Based on cultural common ground and people-to-people exchanges, we should further expand exchanges and cooperation in cultural and creative industries spanning content, food, fashion and beauty, and tourism." He added, "Advanced technology industries are important, but as these industries and society develop, cultural industries will draw far greater attention going forward."
Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry and chairman of SK Group, who also attended, said the two sides "will be able to create new opportunities in advanced industries and supply chains, grow together in future industries and energy, and connect each other's markets more closely through culture and content." He added, "I hope this forum becomes an occasion for turning that potential into concrete cooperation."
The forum drew 51 Korean business leaders, including Chey; LG Group Chairman Koo Kwang-mo; LS Group Chairman Koo Ja-eun; Samsung Electronics President Roh Tae-moon; Kia President Song Ho-sung; POSCO International President Lee Kye-in; and NAVER Chief Executive Choi Soo-yeon. On the Mexican side, 27 government and business figures attended, including Economy Minister Marcelo Ebrard.
