The Korea Mexico Free Trade Agreement: What You Need to Know
The Korea Mexico Free Trade Agreement (KMFTA) is a trade agreement that was signed on April 5, 2018, between South Korea and Mexico. This agreement is expected to significantly boost trade between the two countries, making it easier for South Korean and Mexican companies to do business with each other.
The KMFTA covers a wide range of goods and services, including agricultural products, electronics, automobiles, and textiles. Under the agreement, South Korea will eliminate tariffs on 95% of the products it imports from Mexico, while Mexico will eliminate tariffs on 99% of the products it imports from South Korea.
One of the primary goals of the KMFTA is to increase trade volume between the two countries. Mexico and South Korea already have a strong trade relationship, with bilateral trade reaching $15.4 billion in 2017. By eliminating trade barriers, the KMFTA is expected to increase this figure by $6 billion per year.
Another key benefit of the KMFTA is that it will make it easier for South Korean and Mexican companies to invest in each other`s markets. The agreement includes provisions that protect investors and their investments, making it less risky for companies to expand into new markets.
In addition, the KMFTA includes provisions that address intellectual property rights, e-commerce, and government procurement. These provisions are designed to promote innovation and encourage economic growth in both countries.
The KMFTA is a significant achievement for both South Korea and Mexico. It demonstrates their commitment to free trade and their willingness to work together to create a more prosperous future for their citizens.
If you are a business owner in South Korea or Mexico, it is important to understand the implications of the KMFTA for your business. By taking advantage of the opportunities presented by this agreement, you can expand your customer base and increase your profits.
In conclusion, the Korea Mexico Free Trade Agreement is a major step forward for both countries. By eliminating trade barriers, protecting investments, and promoting innovation, the KMFTA has the potential to significantly boost economic growth and create new opportunities for businesses in South Korea and Mexico.