Lee opens the door to CEPA talks with Mexico; investment agreement revision negotiations also concluded

[Financial News] President Lee Jae Myung opened the door to discussions on a Comprehensive Economic Partnership Agreement (CEPA) through his first state visit to Mexico in 16 years. The two countries agreed to conduct a joint study on the benefits of concluding a trade agreement, while also concluding seven years of negotiations to revise their investment protection agreement. They further agreed to expand financial support for companies operating in Mexico and strengthen supply-chain cooperation in advanced industries.
President Lee returned to Seoul Airport on the 27th after completing a five-night, seven-day tour of the United States and Mexico. He left South Korea on the 21st, attended the United Nations General Assembly in New York and then made a state visit to Mexico.
At their summit on the 24th (local time), President Lee and Mexican President Claudia Sheinbaum adopted the "2026–2030 South Korea-Mexico Joint Action Plan." The two countries also agreed to conduct joint research through their trade authorities to examine the benefits a trade agreement would bring to both sides.
A Cheong Wa Dae official explained to reporters in Mexico City the day after the summit that the trade agreement President Lee had mentioned referred to "a Comprehensive Economic Partnership Agreement (CEPA) to promote economic cooperation in trade, investment, industry and supply chains." However, Cheong Wa Dae said Mexico intends to monitor how the review of the United States–Mexico–Canada Agreement (USMCA) unfolds before proceeding with discussions on an agreement with South Korea.
The negotiations to revise the investment protection agreement, which began in 2019, were also concluded during the visit. The revised agreement strengthens investors' rights, including the recovery of invested funds and compensation for losses, while improving dispute-resolution procedures. The two countries will undertake the procedures required for the agreement to take effect, including signing and parliamentary ratification.
The two countries also agreed to establish a $100 million on-lending facility between their export-import banks to help Mexican companies purchase South Korean goods and services and Korean companies operating locally secure funding. They will also establish a dialogue channel among relevant government agencies to discuss supply chains for crude oil and critical resources.
At the South Korea-Mexico Business Forum held at the World Trade Center in Mexico City on the 25th, President Lee also emphasized the need to quickly resume discussions on a trade agreement. The forum was attended by Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI) and SK Group, Koo Kwang-mo, chairman of LG Group, and representatives from 15 large companies and 31 mid-sized and small businesses.
President Lee said, "The institutional foundation needs to be further and more stably strengthened so that companies can confidently expand their businesses," adding, "I hope the two governments will quickly resume related discussions, firmly support the challenges you business leaders are taking on, and create a foundation for mutually beneficial cooperation."
Regarding the uncertainty surrounding the North American trade environment, he proposed, "Let us organically combine Mexico's excellent manufacturing base and local parts ecosystem with Korea's advanced technological competitiveness." The proposal was aimed at having companies from both countries use Mexico's manufacturing capabilities and Korea's technology to jointly pursue overseas markets.
The two countries adopted 17 memorandums of understanding (MOUs) during the summit, including the Economic, Industrial and Resources Cooperation Initiative, which calls for stronger cooperation on mineral resources; an MOU on scholarships and academic exchanges; and an MOU on tourism cooperation to promote tourism exchanges. They will also pursue cooperation in artificial intelligence (AI), aerospace and defense. The two countries adopted a declaration on AI cooperation and will dispatch a South Korean public-private delegation to Mexico in November to discuss follow-up projects. Based on the defense cooperation MOU, they agreed to expand exchanges in education, training and research and development, while exploring ways for South Korea to contribute to Mexico's military modernization.

[email protected] Seong Seok-woo and Choi Jong-geun Reporter