With Mexico having raised tariffs since the start of this year and a review of the United States-Mexico-Canada Agreement (USMCA) scheduled for July, the government held a roundtable to hear the difficulties faced by companies operating in Mexico.

Yeo Han-koo, Minister for Trade at the Ministry of Trade, Industry and Energy, said at the ‘Roundtable with Companies Operating in Mexico’ held on the 8th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, that “recent shifts in Mexico’s trade stance are proving to be no small challenge for our companies,” adding that “uncertainty around the business environment in Mexico, a strategic hub in the North American supply chain, is higher than ever.”

Yeo said he would do his utmost to resume the suspended Korea-Mexico Free Trade Agreement (FTA) negotiations as soon as possible so that companies can operate in a predictable and stable environment.

He added, “Next week I will visit Mexico in person to hold talks with the Secretary of Economy and to meet broadly with key figures in politics and business, including senators, to convey the difficulties of our companies and to carry out comprehensive outreach to make the case for resuming the FTA.”

Attendees at the roundtable included officials from Hyundai Motor, Renault Korea, Samsung Electronics, LG Electronics, POSCO, Hyundai Mobis, and HD Hyundai Oilbank, among others. They expressed concern that, amid heightened uncertainty in the export environment, the USMCA review could make rules of origin stricter than before.

Company representatives said high-level channels should be used to consult with the Mexican government to minimize the negative impact of higher tariffs, and that, over the longer term, a Korea-Mexico FTA should be concluded so that businesses can receive zero-tariff treatment in the local Mexican market.

The Ministry of Trade, Industry and Energy said it plans to work closely with Mexico’s Ministry of Economy and relevant agencies based on the industry feedback gathered at the roundtable. Yeo stated, “To minimize the burden on companies, the government and the private sector will continue to act as one team and respond proactively to key trade issues.”