Seoul urges Mexico to mitigate impact of planned tariff hikes on Korean firms

Vice Trade Minister Park Jung-sung, left, shakes hands with Mexican Ambassador to Seoul Carlos Penafiel Soto during their meeting at the Mexican Embassy in Seoul, Friday. Courtesy of Ministry of Trade, Industry and Resources

Vice Trade Minister Park Jung-sung on Friday called on the Mexican government to introduce measures to minimize harm to Korean companies from its tariff hike plan, Park's office said.

Park made the call during his meeting with Mexican Ambassador to Seoul Carlos Penafiel Soto, stressing that Korean companies have made substantial investments in Mexico, contributing to its economy, according to the Ministry of Trade, Industry and Resources.

Last week, Mexico's Senate approved tariff hikes from next year 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 Korea.

Under the plan, Mexico plans to impose 25 percent tariffs on imported auto parts, 25-30 percent tariffs on washing machines, 25 percent duties on refrigerators and 30 percent duties on microwaves.

Park asked the Mexican government to pay "special" attention so its tariff hike plan would not adversely affect investment and trade between the two countries.

Park also proposed swift resumption of negotiations for an FTA to create a more stable trade environment and bolster bilateral cooperation in advanced industries, the ministry said.

Mexico has served as a major manufacturing hub for Korean automobile and home appliances companies. Korean companies there have imported intermediate goods from their home country to produce finished goods in Mexico for export to the rest of North America under the free trade pact among the United States, Mexico and Canada.