Korean president calls Mexico 'crucial strategic partner,' urges swifter trade pact talks 

MEXICO CITY — Korean President Lee Jae Myung stressed that Mexico is a “crucial strategic partner” and a “pivotal pillar” of the North American supply chain and urged the two to speed up trade deal negotiations during a bilateral business forum on Friday, as part of his state visit to the country.

“Mexico is a pivotal pillar of the North American supply chain and a global production hub leading high-tech manufacturing sectors such as automobiles, electronics and aerospace,” he said in an address at a Korea-Mexico business forum at the World Trade Center in Mexico City. “For Korean companies, Mexico is more than just a production base: It is a crucial strategic partner connecting North America with the global market.”

Lee was on a three-day state visit to Mexico and held a bilateral summit with Mexican President Claudia Sheinbaum on Thursday.

“We must further strengthen cooperation on investment and high-tech industrial supply chains while expanding the horizons of our collaboration into future industries and the energy sector,” Lee said. “It is clear that combining Mexico’s exceptional manufacturing capabilities and outstanding access to the North American market with Korea’s proven technology, innovation and industrial competitiveness will open up broader and more prosperous growth opportunities for both nations.”

Mexico is Korea’s largest trading and investment partner in Latin America, and Korea is Mexico’s fifth-largest trading partner. Bilateral trade volume reached a remarkable $20.6 billion last year.

“However, despite these impressive achievements in cooperation, our economic relationship has yet to advance to the stage of a comprehensive trade agreement,” Lee said.

“At a time when uncertainty in the global trade environment is greater than ever, we need to solidify the institutional framework so that businesses can expand their operations with confidence. Given the complementary nature of our industrial and economic structures, a trade agreement between Korea and Mexico would undoubtedly serve as a solid foundation for elevating our economic cooperation to the next level.”

He added that he hopes that the governments of both countries will “promptly resume relevant discussions to provide robust support for the endeavors of business leaders and to establish a foundation for mutually beneficial cooperation.”

Regarding cooperation in future industries and the energy sector, Lee urged the two nations to build upon the success achieved in traditional manufacturing and expand the scope of their cooperation not only into future industries, such as biotechnology, health care and beauty, but also into areas of digital innovation, energy, power systems and infrastructure.

“Korean companies are already investing in AI data centers, power systems and EV production facilities in Mexico,” he said. He noted that they are also collaborating with Mexican firms on energy projects, such as low-carbon and methanol initiatives.

He also called for expanding cooperation across the cultural and creative sectors, including content, food, fashion, beauty and tourism.

“While high-tech industries are important, the cultural sector is poised to garner even greater attention as our industries and societies evolve,” he said.

"Driven by deep trust and strong ties, our two countries must forge a future of greater economic cooperation and shared prosperity.”

The business forum was attended by approximately 50 business leaders, including SK Group Chairman Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry, Korea International Trade Association Chairman Yoon Jin-sik, LG Group Chairman Koo Kwang-mo, LS Chairman Koo Ja-eun, Samsung Electronics CEO Roh Tae-moon, Kia CEO Song Ho-sung, POSCO International CEO Lee Kye-in and Naver CEO Choi Soo-yeon.

Attendees from the Mexican side included Secretary of Economy Marcelo Ebrard; Humberto Esqueda, the head of the Trade and Investment Commission of Mexico in Korea; and Luis Lizcano, the executive president of the Federación Mexicana de la Industria Aeroespacial, or Femia.

“Mexico is a key nation in Latin America and a vital economic hub with excellent access to global markets,” SK Chairman Chey said at the forum. “If Korea’s technological prowess and investment capabilities combine with Mexico’s robust manufacturing base and outstanding talent, the potential for what our two nations can achieve together will expand significantly.”

Chey then called to “create new opportunities in high-tech industries and supply chains, grow together in future industries and the energy sector and bring [Korea’s and Mexico’s] markets closer through culture and content."

During his remarks, Lee also pointed to “uncertainties in the North American trade environment,” including the United States-Mexico-Canada Agreement, a trilateral trade pact that entered into force in 2020 and replaced the North American FTA, or NAFTA.

“If companies from both nations join forces, it can also serve as a prime opportunity to gain a competitive edge in the global market,” he said.

Korea is hoping to reach with Mexico a comprehensive economic partnership agreement (CEPA), a trade agreement designed to strengthen economic cooperation across trade, investment, industry and supply chains, a Blue House official told reporters.

Lee and Sheinbaum also hosted a business roundtable at the National Palace in Mexico City after their bilateral summit on Thursday, attended by some 30 officials and business leaders from the two countries. Korean attendees included chiefs of Korea’s top conglomerates, including SK’s Chey and LG’s Koo.

At the roundtable, Lee stressed that Korea and Mexico are “indispensable strategic partners to one another,” Seong Ghi-hong, a presidential secretary for public relations and communication, said in a statement.

Lee further highlighted that “with deepening global economic uncertainty and rapidly shifting global supply chains, now is the opportunity to advance economic cooperation between the two countries.”

He also expressed Korea’s commitment to supporting the success of “Plan Mexico,” Sheinbaum’s vision for strengthening industrial competitiveness and expanding infrastructure.

Korean business leaders in turn emphasized that Mexico serves not merely as a production base but as a crucial gateway to North and Latin American markets.

They further expressed hope for the swift conclusion of an economic agreement between Korea and Mexico to provide institutional support for their economic partnership.

BY SARAH KIM [[email protected]]