Seoul addresses concerns over planned review of USMCA to Mexico

Trade minister Yeo Han-koo / Korea Times file

South Korean Trade Minister Yeo Han-koo held a meeting with Mexico's ambassador to Seoul on Thursday to address concerns over the planned review of a trilateral trade pact between Mexico, the United States and Canada, Yeo's office said.

In the meeting with Carlos Penafiel Soto, Yeo delivered Korean companies' concerns over the first joint review of the U.S.-Mexico-Canada Agreement (USMCA), scheduled for July, which is expected to raise trade uncertainties, according to the Ministry of Trade, Industry and Resources.

Under the USMCA, Mexico has served as a major manufacturing hub for South Korean automobile and home appliances companies. Korean companies there have imported intermediate goods to produce finished goods in Mexico for export to the rest of North America.

Yeo also addressed concerns in relation to Mexico's tariff hikes, asking for the Mexican government's support for Korean companies operating in the Latin American nation.

Mexico began imposing higher tariffs on imports of automobiles, auto parts, textiles, steel and other goods from countries that do not have a free trade agreement (FTA) with the country, including South Korea, this year.

The two sides agreed to hold high-level talks to resume FTA negotiations between South Korea and Mexico, which have been stalled since 2022, in the near future in a bid to facilitate bilateral trade and investment, the ministry said.

"Mexico is a key base for South Korea in the Latin American market and for integration into the USMCA supply chain," Yeo stressed, vowing to continue close communications with Mexico to deliver "tangible" outcomes for companies exporting to and operating in the region.