InterviewMexican envoy sees momentum for Korea-Mexico FTA, urges stronger private sector ties

Mexican Ambassador to Korea Carlos Penafiel Soto said the time is ripe to revive negotiations on a long-stalled free trade agreement (FTA) between the two countries, emphasizing the need for stronger communication and integration between businesses on both sides.

“A trade agreement between Mexico and Korea is perhaps one of the main pending issues in our bilateral agenda,” Penafiel said during an interview with The Korea Times at the embassy in Seoul on Sept. 2. “Despite the lack of an FTA, the economic relationship between Mexico and Korea has expanded and diversified at an exponential pace.”

According to the envoy, Mexican exports to Korea have surged more than 200 percent over the past decade, while total trade between the two nations reached $29 billion in 2024. Korea is now Mexico’s fourth-largest global trading partner and seventh-largest investor, with more than 2,000 Korean firms operating in the country.

Penafiel outlined three key conditions for advancing FTA negotiations.

“First, a strong political impetus at the highest level. Second, a closer dialogue and collaboration between our private sectors. Third, address those issues in which we have diverging views in a frank and open manner.”

He stressed that the lack of deeper engagement between companies has slowed progress, even as bilateral trade flourishes.

“I believe what we have lacked is frank and open communication at various levels, both between our private sectors and on the government side,” he said. “Once we streamline that communication, I think we can move forward.”

The ambassador suggested that Korean firms in Mexico should increase integration with local businesses, noting that “despite there being more than 2,000 Korean companies, there still is no Korean Chamber of Commerce and Investment in Mexico. That would be an interesting and appealing proposal.”

Mexico is courting new investment as President Claudia Sheinbaum rolls out her “Plan Mexico,” which prioritizes infrastructure development, renewable energy and high-tech sectors such as semiconductors, batteries and artificial intelligence (AI). Penafiel said these are areas where Korean firms are well positioned to expand.

“Our governments are in constant communication to identify new areas of cooperation and productive investment, with an emphasis on strategic industries, including semiconductors, renewable energies and new technologies,” he said. “The key is to ensure that the public and private sectors join hands in the pursuit of a more prosperous economic partnership.”

The envoy added that Korea’s leadership in AI and its presidency of the Asia-Pacific Economic Cooperation in 2025 provide further opportunities to deepen technological cooperation.

“Mexico can greatly benefit from more robust cooperation with Korea in the development and utilization of new technologies that seek to improve people’s lives and livelihoods,” he said.

Penafiel expressed optimism that with renewed political will and stronger business-to-business ties, a long-awaited FTA could finally materialize.

“If we can build an agreement that emerges from the root of companies up to the government, we will have great success in achieving a solid agreement,” he said.

Postal Palace in the historic center of Mexico City / Yonhap-AFP

Bilateral ties

The Mexican ambassador underscored the depth of Korea-Mexico relations and outlined priorities for expanding cooperation in diplomacy, trade and cultural exchanges.

“Official relations between our two countries are celebrating 63 years in 2025, but the ties between our peoples date back to over 100 years ago,” Penafiel said. “Up to 100,000 Mexican and Mexican-American soldiers participated in the Korean War as part of U.S. forces under the U.N. command. That history binds us deeply.”

He noted that Mexico and Korea became strategic partners in 2005, and that the Sheinbaum government is “fully committed to deepening our partnership.” He added, “Our relationship goes far beyond the economic, political or commercial realms. It is a truly profound people-to-people connection between Mexico and Korea.”

Penafiel emphasized both countries’ shared role as “middle powers” on the international stage, cooperating on peace, human rights and sustainable development. He highlighted their joint membership in MIKTA — a group with Indonesia, Turkey and Australia — which he said “acts as a bridge between developed and emerging nations.”

Recent high-level meetings have kept momentum strong. Presidents Lee Jae Myung met with Sheinbaum during the G7 summit in Canada in June, a moment Penafiel said “set the tone of a fruitful relation for the next five years.” The 2024 visit of the Mexican Navy training ship ARM Cuauhtemoc to Korea also “had a very positive impact on our country’s image,” he added.

The embassy has prioritized recognizing Mexican veterans of the Korean War, working with the Ministry of Patriots and Veterans Affairs. In July 2024, veteran Alberto Fernandez received Korea’s Order of Military Merit Chungmu. Other initiatives include projects with the Ministry of Food and Drug Safety and cooperation with the Korea Aerospace Research Institute.

Educational and cultural ties are expanding as well.

“The best bridges we have are our youth,” Penafiel said, noting growing student exchanges and the success of resumed Aeromexico direct flights, which have brought up to 10,000 Mexican tourists to Korea in a month.

Looking ahead, he said priorities include strengthening political dialogue, deepening economic ties and expanding youth exchanges.

“In Mexico, there is a great interest in Korea. And from what I have observed during these two years I’ve been here, there is also a strong interest in Mexico within Korea,” Penafiel said. “I consider that the best ambassadors of our two countries are our young people.”