MERCOSUR and the Republic of Korea Move Closer to Signing a Trade Agreement

From July 8 to 12, Montevideo hosted the third round of trade negotiations between MERCOSUR and the Republic of Korea. Uruguay is coordinating this negotiation on behalf of MERCOSUR.

This round holds particular significance for MERCOSUR’s external agenda, which has regained momentum following the recent conclusion of negotiations with the European Union. The bloc is currently engaged in four simultaneous trade negotiations, as part of a broader trade strategy focused on key markets with strong economic relevance and high potential for complementarity—namely, South Korea, EFTA, Canada, and Singapore. The launch of negotiations with South Korea on May 25, 2018, marked the first step in MERCOSUR’s so-called “Asia Agenda.”

During the third MERCOSUR–Korea Negotiation Round, twelve working groups convened: Market Access for Goods; Trade in Services, Electronic Commerce, and Investment; Rules of Origin; Sanitary and Phytosanitary Measures; Technical Barriers to Trade; Dispute Settlement; Institutional Matters; Intellectual Property Rights; Competition; Government Procurement; Trade Remedies; and Trade Facilitation.

Chief Negotiators from both sides estimated that the negotiation process could be finalized by mid-next year, resulting in a broad, comprehensive agreement aligned with the latest regulatory trends in international trade. According to data from the previous year, trade between MERCOSUR and the Republic of Korea amounted to nearly USD 10 billion, covering sectors such as electronic circuits, soybeans, vehicles, iron, mobile phones, and corn, among others.

Source: UCIM, based on information from the Ministry of Foreign Affairs, Oriental Republic of Uruguay