South Korea’s chief trade negotiator, Cheong In-kyo, met this Wednesday with Mexico’s ambassador to Seoul, Carlos Peñafiel Soto, to address the possible consequences of changes in US trade policy under the incoming Donald Trump Administration. . This meeting was organized by the Ministry of Commerce, Industry and Energy of South Korea and is part of the Asian country’s efforts to mitigate uncertainties that could affect international trade relations.
According to the ministry, the main objective of the meeting was to exchange points of view on ways to strengthen bilateral economic cooperation, particularly in a context marked by trade uncertainties. The discussion also sought to outline strategies to address the possible impacts of US trade policies on South Korean companies operating in Mexico and Canada under the US-Mexico-Canada Free Trade Agreement (USMCA).
It was also noted that the meeting took place about a week after South Korean President Yoon Suk Yeol declared short-lived martial law, adding an additional layer of tension to the region’s political and economic landscape. This context complicated the negotiations but also underlined the importance of maintaining an open dialogue between the two countries.
“Currently, South Korean companies in the automotive, auto parts and electronics industries are operating in Mexico due to the USMCA and the Inflation Reduction Act (IRA),” the South Korean ministry noted in a statement. However, he warned that these companies could face serious challenges if the United States decides to implement new tariffs, such as the proposed 25 percent tariff on all products imported from Mexico and Canada. This is a measure that Donald Trump promised during his presidential campaign.
During the meeting, Cheong emphasized the South Korean Government’s commitment to implementing policies that ensure stable economic activities. He stressed that the country is willing to work closely with its international partners to minimize the negative impacts of the protectionist trade policies of the United States. Likewise, he called on Mexico to continue trusting South Korea as a reliable and committed trade partner.
Cheong also highlighted the importance of sharing information quickly and efficiently to ensure the stable operation of South Korean companies in the Latin American country. To this end, he proposed establishing a dedicated communication channel between the two nations that allows them to respond quickly to challenges that may arise in the commercial landscape. These actions, according to the South Korean negotiator, would be key to maintaining the confidence of companies in the Mexican market and to strengthening bilateral economic ties.
The Mexican ambassador, Carlos Peñafiel Soto, expressed his willingness to collaborate in these initiatives and reaffirmed Mexico’s commitment to strengthening the commercial relationship with South Korea. He noted that his nation is also evaluating strategies to confront the possible implications of United States trade policies, as well as to diversify its economic alliances.
Cheong also mentioned South Korea’s interest in moving towards a free trade agreement with Mexico, which would allow the Asian country to diversify its commercial portfolio and reduce its dependence on certain markets. This agreement could open new opportunities for companies in both countries and strengthen economic cooperation at a time of growing global uncertainty.
In this way, the meeting reflected the concern shared by both nations regarding changes in the commercial policy of the American power. The protectionist measures proposed by Donald Trump have generated concern in South Korea’s business sectors, especially in those industries that depend on access to the US market through the USMCA. In addition, these companies also face an uncertain outlook due to possible revisions to the Inflation Reduction Law, which could affect supply chains and competitiveness in the North American market.
For its part, South Korea’s Ministry of Trade, Industry and Energy has emphasized that it will continue to closely monitor developments in US trade policy and work closely with its international partners to mitigate risks. Furthermore, he reiterated his commitment to supporting South Korean companies abroad and ensuring a stable and predictable economic environment.
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