By Na Jeong-ju
Korea Times correspondent
MEXICO CITY ― President Lee Myung-bak and his Mexican counterpart Felipe Calderon agreed Thursday (local time) to work together for an early resumption of talks on signing a free trade agreement (FTA) between Korea and Mexico.
The talks started in 2007 but have been suspended since June 2008 due to Mexico's concerns about a possible trade imbalance.
The two sides also signed an agreement to open a direct air route to reflect growing economic ties and people-to-people changes, Cheong Wa Dae said following their summit in the Mexican capital.
Mexico is the final leg of Lee's weeklong trip that has also taken him to Canada and Panama. He will return to Seoul today.
Calderon promised to allow Korean firms to participate in state-initiated infrastructure projects and open the door for Korean banks so that they can offer services for Korean firms operating in the Central American country.
Mexico offers such benefits only to firms from countries with which it has signed FTAs, according to the Korean presidential office.
"That means Mexico is treating Korea very specially," presidential spokeswoman Kim Eun-hye told reporters. "In 2009, the Mexican government opened international biddings worth $2 billion for the construction of five refinery facilities. Firms from countries with no FTA ties were banned from participating in four of the projects."
However, there is a rough road ahead for Korea and Mexico to restart the stalled FTA talks as Mexico's business associations have opposed the deal, citing a possible negative impact on domestic industries.
Seoul has called for an early resumption of the talks, saying the FTA will be crucial to deepening the strategic partnership between the two countries.
Lee and Calderon agreed in principle that the FTA will bring the two countries closer, economically and culturally.
"We had very successful talks," Lee said at a joint press conference following the summit. "We agreed to move our relations forward by boosting economic, energy, infrastructure, science and technology, and cultural cooperation. We shared a common understanding that the FTA talks should resume."
Calderon said, "I expect the deal, if signed, to increase bilateral trade and spur economic growth for both countries."
The two sides expressed satisfaction with the progress of their economic partnership.
Mexico is Korea's largest trade partner in Latin America. Over the past five years, two-way trade has doubled to some $10 billion as Samsung and LG have become the most popular electronics brands here.
More than 1,470 Korean firms are now operating in Mexico, mostly engaged in the manufacturing of electronic goods, steel and automobile parts. The firms have created more than 40,000 jobs.
The summit also focused on building a partnership on the international stage.
Calderon said he would fully cooperate for Korea's successful hosting of the Group of 20 Summit, slated for Seoul in November.
As Mexico was named to host the G-20 meeting in 2012 at the latest summit in Toronto, Canada, the forum gives a crucial opportunity for both countries to represent the voices of emerging economies, Lee said.
Lee also promised to cooperate with Mexico as it steps up preparation for U.N. climate talks slated for December.
After the summit, Lee met with Mexican business and political leaders to call for their support for the Korea-Mexico FTA and explain Korea's plan to foster closer ties with Central American countries.