Auto parts companies open to analyzing an FTA with Korea

It will be in the next few days when the Ministry of Economy begins the work tables with the National Auto Parts Industry (INA) to give way to the analysis and the possible opportunities that a Free Trade Agreement between Mexico and South Korea would have, and from there start the round of trade negotiations.

This was reported by Alberto Bustamante, director of the INA, who said: “the auto parts industry is open to exploring potential opportunities offered by a trade agreement with the Asian nation.”

After the Mexican government signed the letter of understanding -last week- to reactivate trade negotiation ties with South Korea, the undersecretary of Foreign Trade, Luz María de la Mora, reported that they will work hand in hand with the sectors productive to carry out the analysis of this eventual FTA and see the sectoral viability.

During this period, information will be exchanged to reach a position that will lead to the start of trade negotiations with Korea.

“If it is feasible, the second step would proceed to set dates for the rounds of negotiations to start through the Meeting Room of the Business Coordinating Council (CCE),” said Bustamante.

Although the position of the auto parts industry in Mexico is that there are no possibilities of commercial exchange at the Tier 1 level, during the talks opportunities could be analyzed to form productive chains in other areas, in second and third level suppliers (which are parts and components for Tier 1 auto parts).

“We are not closed to fine-tuning and opportunities that the authorities could offer us” about the potential for trade that there would be with Korea, clarified the director of the INA.

The undersecretary of the Ministry of Economy highlighted that South Korea is Mexico’s third largest trading partner and fifth destination for exports.

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