South Korea requested the Mexican government’s support from the United States to prevent South Korean companies with operations in Mexico from being harmed by the recent tariff measures announced by Washington.
The request was made during a meeting between South Korean chief trade negotiator Cheong In-kyo and Mexican Undersecretary of Foreign Trade Luis Gutiérrez on the sidelines of the Asia-Pacific Economic Cooperation (APEC) trade ministers’ meeting on the South Korean island of Jeju, which was reported on Friday, May 16.
During the bilateral meeting, Cheong “requested that every effort be made in negotiations with the United States so that (South Korean companies in Mexico) are not harmed by the tariff measures,” according to South Korea’s Ministry of Trade, Industry, and Energy.
What did Mexico respond to South Korea’s request regarding the US tariffs?
In response, Mexican authorities confirmed this Friday that Undersecretary Gutiérrez expressed to Cheong his country’s commitment to foreign investment.
“We are working with the entire industry to protect investments. You can count on us,” Gutiérrez said, as quoted by Mexican authorities.
Among the South Korean industries most exposed to the effects of the new US tariffs are the automotive, auto parts, and steel sectors, represented in Mexico by companies such as Kia, Hyundai, POSCO, and Hanwha.
Hyundai’s case illustrates the concrete effects that are already beginning to be felt in the regional production environment.
The South Korean company recently announced in a conference call its decision to move part of the production of the Tucson model—currently manufactured at its plant in the Mexican state of Nuevo León—to its factory in Alabama, United States, according to the South Korean media outlet Hankyung.
On another note, during the aforementioned meeting, Cheong and Gutiérrez agreed on the need to quickly reactivate negotiations for a free trade agreement between South Korea and Mexico, which are currently stalled.
Source: elfinanciero
