State Visit to Mexico: Lee Calls for Resuming Economic Agreement Talks, Proposes 'FA-50' for Defense Cooperation

Advance Interview with Local Media Revealed
Potential Restart for Long-Stalled FTA Talks
Suspended in 2008, Agreed to Resume in 2022 But Stalled Again

FA-50 Proposed for Mexico's Air Force Modernization
"Potential to Expand to Technology Transfer and Local Production"
Broader Cooperation in Advanced Industries, Security, and Culture

President Lee Jae-myung has stated the need to resume negotiation of an “Economic Agreement” between Korea and Mexico. There are observations that the Korea-Mexico Free Trade Agreement (FTA), which was suspended in 2008 and agreed to be resumed in 2022 but has since stalled, could move forward at the presidential level. President Lee also proposed the Korean-made light combat aircraft FA-50 for Mexico’s Air Force modernization project, envisioning expanded cooperation through technology transfer and local production. This indicates a commitment to strengthening economic cooperation by expanding both trade and defense industry collaboration.

President Lee Jae-myung and First Lady Kim Hye-kyung, on a state visit to Mexico, are seen disembarking from Air Force One at Felipe Angeles International Airport in Mexico City on the 23rd (local time). 2026.9.24 Yonhap News Agency

In an interview released on the 23rd (local time) by major Mexican daily “El Universal,” President Lee remarked, “It’s time to establish an institutional foundation worthy of our solid economic cooperation” and stressed, “It is important to resume economic agreement negotiations between Korea and Mexico, advance the signing of a social security agreement, and strengthen investment protection mechanisms.” The interview was arranged in advance to coincide with President Lee’s state visit to Mexico.

The “resumption of economic agreement negotiations” mentioned by President Lee is also related to the long-stalled Korea-Mexico FTA talks. The two countries began negotiating a Strategic Economic Complementation Agreement (SECA), a preliminary step toward an FTA, in 2006, and upgraded this to FTA negotiations in 2007, but the talks were suspended in 2008. In 2022, trade ministers from both countries agreed to reopen FTA negotiations for the first time in 14 years, but progress has once again stalled.

This year, both countries have publicly highlighted the need to resume negotiations. The Ministry of Trade, Industry and Energy announced this April that the Korea-Mexico FTA has been suspended since 2022 and that it would continue high-level discussions to resume the process as soon as possible. Last month, Roberto Velasco, Mexico’s foreign minister who visited Korea, indicated that, depending on the review of the United States-Mexico-Canada Agreement (USMCA), there may be further FTA discussions with Korea in the future.

President Lee emphasized that “Mexico is more than just a production hub,” describing it as a “core strategic platform” for entering the North American and global markets. He identified semiconductors, aerospace, and electric vehicles as major sectors for linking with the Mexican government’s “Plan Mexico.” Currently, around 500 Korean companies operate in Mexico, with cumulative investments totaling approximately 13.3 billion dollars and creating around 150,000 jobs. Since the two countries established a strategic partnership in 2005, Korean investment in Mexico has increased twenty-sixfold.

Defense Industry Cooperation Takes Shape: “Laying the Foundation through FA-50 Collaboration”

President Lee Jae-myung and First Lady Kim Hye-kyung, who paid a state visit to Mexico, are greeting well-wishers on the Air Force One plane upon arrival at Felipe Ángeles International Airport in Mexico City on the 23rd (local time). 2026.9.24 Yonhap News Photo by Yonhap News Agency

President Lee also concretized his plans for defense industry collaboration following trade cooperation. He said, “If Mexico proceeds with a program to modernize its Air Force fighters, Korea’s FA-50—based on its performance and price competitiveness—can serve as a foundation for mutually beneficial cooperation.” He added, “Technology transfer and local production in the future could strengthen Mexico’s industrial base and contribute to job creation.”

The FA-50 is a light combat aircraft developed by Korea Aerospace Industries (KAI) based on the domestically made T-50 supersonic advanced trainer. Besides training, it can be used for actual combat missions employing precision-guided munitions. The aircraft has been exported to countries such as the Philippines, Poland, and Malaysia. While the presidential office hinted, ahead of this state visit, at possible cooperation between Mexico’s military modernization projects and Korean defense solutions, it did not disclose specific models or detailed methods of collaboration.

President Lee also announced that cooperation between the two countries is expanding in the energy supply chain. He explained, “This year, as instability in the Middle East raised concerns about energy supply disruptions, Korea worked closely with Mexico to diversify crude oil supply sources, and as a result, imports of Mexican crude have increased.” He continued, “The greater the geopolitical uncertainty, the more vital it is to have reliable partners for supply chain stability. There is a need to combine Mexico’s energy potential with Korea’s advanced manufacturing capabilities.”

Expansion of Cooperation in Advanced Industries and Security: Stronger Response to Transnational Crime

President Lee proposed expanding cooperation in advanced industries and public security as well. He suggested connecting Korea’s AI transformation (AX) and physical AI to innovation in Mexico’s manufacturing and public services through joint pilot projects and technological collaboration. For space, he stated that cooperation can be strengthened among governments, corporations, and research institutes, focusing on satellites and launch vehicles.

Regarding transnational crimes such as online scams, human trafficking, and drug smuggling, he proposed that the two countries’ law enforcement agencies cooperate more closely and bolster collaboration in safety infrastructure and technology. President Lee said, “If Korea and Mexico combine their respective strengths and broaden cooperation from advanced technology and industry to national security and the protection of citizens, a new chapter can open in bilateral relations.”

Joint Production of Cultural Content and Nurturing Talent: Plans for K-Culture Center

Last May, BTS and Claudia Sheinbaum, President of Mexico City, greeted approximately 50,000 Mexican fans from the balcony of the National Palace. Photo by Reuters Yonhap News

In the field of culture, President Lee outlined plans to establish a cooperation framework for joint content production and nurturing talent, as well as to promote the creation of a “K-Culture Center” in Mexico where Korean culture can be experienced comprehensively. He cited the scene last May when BTS and President Claudia Sheinbaum of Mexico greeted about 50,000 fans from the National Palace balcony, describing it as “not only an example of the fervor of cultural exchange between the two countries but also a symbolic showcase of bilateral friendship.”

He continued, “The ongoing ‘K-Expo Mexico 2026’ in Mexico City is an excellent opportunity to link culture and the economy because it presents not only cultural content but also food and beauty industries.” He added, “On the occasion of this summit, the two countries agreed to build joint production and talent development mechanisms to sustain cooperation in content and the arts.”

Meanwhile, President Lee arrived in Mexico City after his visit to New York for the United Nations General Assembly, marking the first state visit by a Korean president to Mexico in 16 years. On the 24th, he is scheduled to hold a summit meeting with President Sheinbaum to discuss cooperation in trade, investment, supply chains, defense, and advanced industries.

This content was produced with the assistance of AI translation services.