Trade groups, including Mexico’s steel association, Canacero, have opposed a potential trade agreement between Mexico and South Korea, which the associations say could hinder prospects for the Mexican steel industry.
Canacero said it supports a statement by the Mexican Confederation of Industrial Chambers, Concamin, which said the agreement will end up replacing the local supply chains with South Korean supply chains.
Concamin noted Mexico imported about $14 billion in products from South Korea in the full-year 2021. Concamin argued the agreement would contradict the understanding of the North American Leaders' Summit held on November 18, 2021, in which US president Joe Biden agreed to work as a region to substitute imports from Asian countries.
The president of Canacero, David Muguerza, told El Economista the South Korea imports into Mexico would result in unfair trade.
“Just one South Korean steelmaker produces twice what we produce in Mexico,” he said.