Lee Directly Raises Korean Companies' Tariff Issues in Mexico Summit: "FTA Not Ready on Mexico's Side"

President Lee's Korea-Mexico Summit
Establishment of Joint Director General Committee... FA-50 Included as Summit Agenda
Wi Seongrak: "Institutional Cooperation to Be Strengthened for Korea-Mexico Economic Cooperation"
Seven-Year Investment Protection Agreement Revision Talks Successfully Concluded
Continued Collaboration for a Stable Supply Chain of Mexican Crude Oil

It was confirmed on the 24th (local time) that President Lee Jae-myung directly raised, one by one, the difficulties faced by Korean companies in Mexico, including tariff burdens and delays in tariff exemption and refund procedures, during his summit with Mexican President Claudia Sheinbaum. The Mexican side reportedly responded to some issues by stating, "We will look into this" or "We view this positively."

President Lee Jae-myung and Mexican President Claudia Sheinbaum co-chaired the Korea-Mexico Business Meeting at the Presidential Palace in Mexico City on the 24th (local time). The meeting was attended by more than 30 high-ranking officials from both countries, including nine Korean business leaders such as Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry and chairman of SK Group, and Koo Kwang-mo, chairman of LG Group. September 25, 2026, Yonhap News Agency

Furthermore, while Korea prefers a Korea-Mexico Free Trade Agreement (FTA), the two countries agreed to explore the possibility of pursuing it after Mexico completes its ongoing review of the United States-Mexico-Canada Agreement (USMCA) with the United States. Until then, they will operate a separate trade, investment, and industrial cooperation channel.

An official from the presidential office said at a press briefing held at the press center in Mexico City, arranged in conjunction with President Lee's state visit, "While our preference is for an FTA, Mexico is reportedly not in a position to respond favorably at this time." The official explained that this is because, as Mexico is reviewing the USMCA with the United States, rules of origin have emerged as a key issue.

A considerable number of Korean companies operating in Mexico import materials and parts from Korea, process and assemble them locally, and then export the finished products to the U.S. market. The official from the presidential office explained, "Because the United States has presented some tough demands regarding rules of origin to Mexico, Mexico needs to reach a certain level of clarity on these issues within the USMCA before it can discuss trade agreements with other countries, including Korea."

Accordingly, the two countries agreed to keep open various possibilities, not limited to an FTA but including a lower-level Comprehensive Economic Partnership Agreement (CEPA). The concept is to first establish a 'Trade, Investment and Industrial Cooperation Initiative,' under which a joint director general-level committee would be established to jointly study the mutual benefits and specific cooperative measures, with further steps to be taken based on these findings.

The official from the presidential office stated, "We will first wait for the outcome of the USMCA review, but in the meantime, the joint committee will study the potential benefits for both sides, and based on that, the next steps will be advanced," adding, "This is a fairly meaningful outcome as well."

During the summit process, a significant portion of the difficulties faced by Korean companies was discussed in detail. The official commented, "President Lee does not remain at a general level during summits but instead strives for detailed and concrete outcomes," and "On this occasion as well, he presented every issue compiled in a summary of our companies' difficulties, one by one, without exception."

In particular, the focus was placed not only on tariff burdens but also on issues such as delays in tariff exemption and refund procedures. The official from the presidential office explained, "While Mexico did not accept everything, there were some outcomes where the Mexican side said, 'We will look into this' or 'We view this positively,'" and added, "Corporate difficulties were thoroughly raised and discussed." Going forward, working-level officials from both countries are expected to continue follow-up consultations.

Wi Seongrak: "As a result of the Korea-Mexico summit, institutional cooperation will be strengthened to implement economic cooperation"

Sung-Rak Wi, Director of the National Security Office, is giving a briefing on current issues at a hotel in Mexico, where President Lee Jae-myung is on a state visit, on the 24th (local time). 2026.9.25 Yonhap News Agency

Wi Seongrak, Director of the National Security Office, previously stated in a briefing on the outcome of the state visit that the two leaders "agreed to strengthen necessary institutional cooperation in order to actively respond to the changing global trade environment and to fully realize the economic cooperation potential possessed by both countries." The two countries decided to conduct a joint benefits study and derive optimal measures for expanding mutually beneficial trade and investment.

The issues surrounding the revision of the investment protection agreement, which had been under negotiation for seven years, were resolved comprehensively as a result of this summit. Director Wi said, "While more clearly defining the legitimate regulatory authority of the investment-receiving country, we also strengthened protection of Korean companies' rights regarding investment recovery and compensation for losses." Provisions to prevent indiscriminate lawsuits by paper companies were newly established, and measures were taken to guarantee the transfer of investment funds even during a foreign exchange crisis, along with improvements to dispute resolution procedures and the scope of investor protection.

The two countries also agreed to establish a new export credit facility worth 100 million U.S. dollars between their respective export-import banks. In addition, the sharing of information related to intellectual property rights protection and the prevention of illegal goods clearance will be strengthened. Based on Korea's additional procurement of 13 million barrels of Mexican crude oil following the leaders' phone call in May, the countries will also continue to work together for a stable crude oil supply chain.

In the defense sector, the domestically produced FA-50 light combat aircraft, mentioned by President Lee during a local media interview, was included as a formal agenda item at the summit. An official from the presidential office noted, "Defense cooperation between Korea and Mexico was one of the key topics, and the FA-50 was among the items discussed. We provided explanations, and Mexico listened attentively and agreed to follow up with working-level consultations." The official further stated, "Military vehicles and other equipment were also discussed, raising the possibility of expanding cooperation through follow-up talks."

At the business meeting, Korean companies presented business expansion plans linked to the Mexican government's industrial competitiveness enhancement strategy, "Plan Mexico." SK bioscience proposed participation in Mexico's national immunization program and cooperation for the transfer of vaccine quality control capabilities, while LG announced plans to broaden investment in automotive electronics and autonomous driving and to further expand its five existing local production bases across additional states.

Director Wi announced that, as a result of this state visit, a total of 16 memoranda of understanding (MOUs) were signed across seven areas—economy, finance, education, culture, tourism, development, and customs—along with a separate declaration of cooperation on artificial intelligence. The two countries also agreed to pursue the establishment of a comprehensive cooperation framework in the aerospace sector, encompassing not only aircraft exports but also local production, maintenance, supply chain participation, financial support, and workforce training.

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