Cheong Wa Dae: "Keeping the possibility of a Korea-Mexico FTA open ... next steps after seeing the USMCA outcome"

[Financial News, Mexico City, Mexico — Reporter Choi Jong-geun]President Lee Jae Myung, who is on a state visit to Mexico, held a summit meeting with President Claudia Sheinbaum at the Mexican presidential palace in Mexico City on the 24th (local time) to discuss ways to expand trade and investment between the two countries. Regarding a free trade agreement (FTA), however, the prevailing view was that it would be too early to pursue one immediately, as Mexico is consulting with the United States on a review of the United States-Mexico-Canada Agreement (USMCA). The two countries agreed to monitor the outcome of the USMCA discussions while conducting a joint study and consider follow-up cooperation, such as an FTA or a Comprehensive Economic Partnership Agreement (CEPA).
A senior Cheong Wa Dae official explained the achievements of President Lee's state visit at a local press center in Mexico, stating, "The investment guarantee agreement was one of the major achievements, and discussing various other frameworks to promote trade and investment was another achievement."
Regarding an FTA, the official said, "Our preference is for an FTA, but Mexico says it is not currently ready to respond in that way." The official added, "Mexico is currently consulting with the United States on a review of the USMCA."
The official explained, "Many of our companies do business here. They bring materials or parts from Korea, process and assemble them here, and sell the finished products in the U.S. market. That is one of the issues under the USMCA."
In particular, the official said, "Regarding what is known as determining rules of origin, the United States is presenting Mexico with somewhat tough terms. Some clarity must first emerge in the USMCA discussions before Korea and countries like it can discuss a trade agreement or something similar with Mexico."
The official said, "At this point, it is somewhat early to pursue an FTA. We could consider a CEPA, which is a slightly lower level than an FTA, or a mutually complementary trade framework that is somewhat less comprehensive than that."
The official continued, "What the two sides have agreed on for now is to keep that possibility open, first see the USMCA outcome, and in the meantime establish a trade, investment and industrial cooperation initiative and set up a director-general-level joint committee under it. The joint committee will study what benefits would arise and how they would be realized, and then we will seek to advance to the next stage accordingly."
At their summit meeting that day, the two leaders agreed on the need to expand trade and investment between the two countries in a mutually beneficial manner. To that end, they agreed to conduct a joint study on mutual interests and identify the best possible options.
[email protected] Choi Jong-geun Reporter