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Korea, Paraguay sign economic partnership agreement on trade and investment

Published: 23 Aug. 2024, 11:25

Trade Minister Cheong In-kyo speaks during a briefing in the central city of Sejong on Aug. 22, 2023. [YONHAP]

Korea and Paraguay have signed an economic partnership agreement on trade and investment, marking the second country in South America's Mercosur bloc to clinch such a deal, officials said Friday.

Trade Minister Cheong In-kyo signed the Trade and Investment Promotion Framework (TIPF) with Paraguay during a meeting with his Paraguayan counterpart, Javier Gimenez, in Seoul, according to the Ministry of Trade, Industry and Energy.

A TIPF is a nonbinding agreement that calls for enhancing economic ties and facilitating cooperative exchanges in various areas. The agreement, however, does not include tariff-free terms like a traditional FTA.

"The cooperation channel established with Paraguay's trade ministry is significant as it sets the stage for full-fledged bilateral cooperation in trade, industry and energy," Cheong said.

The ministry noted that Paraguay is an attractive trade partner, being one of the fastest-growing countries in the region, with its economy expanding 4.6 percent on year in 2023.

Paraguay also has the potential to become a significant manufacturing hub for Korean businesses in the region, the ministry added.

The ministry also pointed out that Korean cars accounted for eight of the top 20 best-selling automobiles in Paraguay last year.

Yonhap