MERCOSUR Negotiates a Trade Agreement with South Korea
With a trade exchange exceeding USD 10 billion, MERCOSUR and South Korea have officially launched negotiations for a free trade agreement aimed at boosting business and investment between the South American bloc and the Asian country.
The official launch took place in Montevideo, at the MERCOSUR Building, with the participation of negotiators Valeria Csukasi (Uruguay), who currently holds the Pro Tempore Presidency of the bloc; Horacio Reyser (Argentina); André Odenbreit Carvalho (Brazil); and Juan Ángel Delgadillo (Paraguay). The South Korean delegation was led by Kijune Kim.
Following the formal welcome by Ambassador Csukasi, technical delegations began their specific work in negotiating groups. Meetings in Montevideo are scheduled to continue through Saturday the 15th.
With a strong focus on agricultural products and steel, MERCOSUR’s four member countries collectively exported nearly USD 3.7 billion to South Korea in 2017, while imports from the Asian country totaled USD 6.3 billion, mainly in electronics and vehicles.
As of 2018, MERCOSUR’s exports to South Korea had reached USD 835 million, and imports totaled USD 1.165 billion.
Ranked as the world’s fifth-largest economy, MERCOSUR records nearly USD 400 billion in extra-bloc trade, with a positive trade balance of USD 55.9 billion. In recent years, MERCOSUR has established itself as a key player in regional integration processes and as a major actor in the global economy. This week, it is also holding negotiations for a trade agreement with the European Union, and next week with Canada. Additionally, ongoing negotiations are being held with Singapore and EFTA (comprising Switzerland, Norway, Iceland, and Liechtenstein).
The bloc represents 82% of the region’s total GDP, spans nearly 13 million square kilometers, and is home to about 70% of South America’s population.
In this context, MERCOSUR’s weight has been decisive in its 27 years of existence, enabling it to sign agreements of varying scope with countries such as Chile, Mexico, Bolivia, Colombia, Israel, and Mexico (again), among others. It also has fixed preference agreements in force with India and SACU, the Southern African Customs Union.
In addition, the four founding countries—Argentina, Brazil, Paraguay, and Uruguay (with Venezuela currently suspended and Bolivia not yet ratified as a member)—are engaged as a bloc in various dialogue tracks, including with ASEAN, China, Japan, Turkey, and the Eurasian Economic Union, among others.
