South Korea, Mexico to push for limited trade talks
South Korea, Mexico to push for limited trade talks
Sat Sep 10, 2005
SEOUL (Reuters) - South Korea and Mexico have agreed to discuss a limited economic cooperation after failing to open talks on a free trade agreement, Seoul’s presidential office and foreign ministry said on Saturday.
South Korea, which sealed free trade pacts with Chile in 2004 and Singapore last month, had pushed for a trade deal with Mexico for several years, citing potential economic growth in Central America in exchange for Mexican agricultural produce.
Mexico was South Korea’s 19th largest export market last year and 46th biggest importer, with trade volume between both countries reaching $3.4 billion. Most South Korean capital in Mexico is invested in textile factories.
For Mexico, which signed a bilateral trade pact with Japan last year, trade agreements with Northeast Asian countries would help it import technology and electronic equipment, much of which could then be exported to the United States.
But disputes over South Korean car makers’ possible investment and imports of Mexico’s farm produce stymied free trade talks, said Lee Kyu-hyung, spokesman for Seoul’s foreign ministry, by telephone.
In a statement released during South Korean President Roh Moo-hyun’s state visit to Mexico, the presidential office said the two nations agreed to push for a strategic economic complementation agreement (SECA) as early as possible aimed at expanding and promoting trade and investment.
The SECA is a notch below a free trade agreement and would be the first such pact for South Korea, Lee added.
South Korea, home to semiconductor chip maker Samsung Electronics Co. Ltd. and auto maker Hyundai Motor Co., has been working on free trade negotiations with Japan. It has also been in trade talks with the Association of South East Asian Nations (ASEAN) and the European Free Trade Association (EFTA).
