Seoul: South Korean Trade Minister Yeo Han-koo held a meeting with Mexico's ambassador to Seoul on Thursday to address concerns over the planned review of a trilateral trade pact between Mexico, the United States, and Canada, Yeo's office said.

According to Yonhap News Agency, in the meeting with Carlos Penafiel Soto, Yeo conveyed Korean companies' concerns over the first joint review of the U.S.-Mexico-Canada Agreement (USMCA), scheduled for July. This review is anticipated to raise trade uncertainties, as stated by the Ministry of Trade, Industry and Resources. Under the USMCA, Mexico has become a significant manufacturing hub for South Korean automobile and home appliances companies. These companies import intermediate goods to produce finished goods in Mexico for export to the rest of North America.

Yeo also discussed concerns regarding Mexico's recent tariff hikes, requesting the Mexican government's support for Korean companies operating within the country. Mexico has started imposing higher tariffs on imports of automobiles, auto parts, textiles, steel, and other goods from countries without a free trade agreement (FTA) with Mexico, which includes South Korea, starting this year.

The two sides agreed to organize high-level talks aimed at resuming FTA negotiations between South Korea and Mexico. These negotiations have been stalled since 2022, and the aim is to facilitate bilateral trade and investment, according to the ministry. Yeo emphasized Mexico's role as a crucial base for South Korea in the Latin American market and its integration into the USMCA supply chain. He committed to maintaining close communications with Mexico to achieve "tangible" outcomes for companies exporting to and operating in the region.