April 05, 2016 12:11
President Park Geun-hye and her Mexican counterpart Enrique Peña Nieto agreed Sunday to resume free trade talks that have been suspended since 2008.
In the talks, the two countries will also discuss how Mexico can help Korea join the controversial Trans-Pacific Partnership.
Mexico was until recently lukewarm about an FTA with Korea because it was focusing on the U.S.-led TPP.
But a senior Cheong Wa Dae official here said it seems Mexico had a change of heart because the TPP is stuck in the U.S. Congress amid massive resistance around the world "and nobody knows how much longer it will take for the treaty to come into effect."
A Korea-Mexico FTA would reduce whopping tariffs on major Korean exports like cars, steel and electronics, improving access to a market worth US$82.3 billion.
Mexico in turn will be able to expand exports of cars and agricultural products to Korea and secure a beachhead for its advance into Northeast Asia.
Meanwhile, the two countries signed 34 memoranda of understanding on trade, investment, transportation, energy, hydro resources, and healthcare.
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