Trade minister in Mexico for talks on supply chain issues and sourcing

Trade Minister Yeo Han-koo will visit Mexico this week for talks on ways to boost cooperation on supply chains of key materials and their push for a bilateral free trade agreement, the industry ministry said Monday.

During a three-day visit from Monday, Yeo is scheduled to hold a meeting with Mexican Economy Minister Tatiana Clouthier and discuss signing a memorandum of understanding meant to boost cooperation in supply chains, according to the Ministry of Trade, Industry and Energy.

Mexico is the world’s major producer of such key resources as copper and zinc, which are necessary for production of semiconductors and batteries.

The two sides will also discuss the possible resumption of negotiations on a bilateral free trade agreement, which have been stalled since 2008.

They have been discussing when and how to resume the negotiations through working-level talks since last year, according to the ministry.

Trade volume between the two nations came to $19.2 billion last year, up from the previous year’s 14.6 billion, government data showed.

While in Mexico, Yeo also plans to meet with Ecuador’s Exterior Commerce Minister Julio Jose Prado to explore ways to work more closely in terms of supply chains, as well as their strategic economic complementary agreement.

Their talks have been suspended since 2016.

Ecuador is a major oil producer in South America and has abundant natural resources, such as gold, silver and nickel.

Korea has been working to boost partnerships with more resources-rich nations in a move to ensure stable supply chains and diversify import channels, particularly after a shortage of urea solution late last year, a key fluid used in diesel vehicles to cut emissions, following China’s export curbs.

Yonhap