By Kim Hyelin and Kim Hayeon

Korea and its largest trading partner in Latin America, Mexico, will resume negotiations on a bilateral free trade agreement (FTA) after a 14-year hiatus.

The Ministry of Trade, Industry and Energy in Seoul on March 3 said Minister for Trade Yeo Han-koo on March 1 in Mexico City agreed with Mexican Secretary of Economy Tatiana Clouthier to restart talks on the accord that had stalled since 2008.

Mexico is a strategically important country as it geopolitically bridges the two Americas and has a free trade network covering both continents and the Asian-Pacific region. Mexico is also Korea's largest trading partner in Latin America and Korea is Mexico's No. 2 trading partner in Asia.

Despite the huge need for such an agreement, Mexico, along with Taiwan and Hong Kong, is a top 10 exporter to Korea that has no free trade deal with Seoul.

The ministry said, "The Korea-Mexico FTA will not only expand the trade of traditional products and services promote investment, but also serve as the foundation for building practical bilateral cooperation in areas like supply chain resilience, climate change and digital commerce."

Both sides will start preliminary negotiations this month with the goal of holding the first round of negotiations by the first half of the year.

Korea and Mexico will also discuss signing a memorandum of understanding on supply chain cooperation. They will also resume working-level talks on cooperation between Korea, with its high competitiveness in the global supply chain in sectors like semiconductors, batteries and electronic cars, and Mexico, a major producer of core resources for making secondary batteries and chips.

At the meeting, Minister Yeo requested Mexico's close cooperation with other allies when Korea submits next month its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Minister Clouthier expressed her government's support for Korea's entry and asked that Seoul share its preparatory process with Mexico City.

kimhyelin211@korea.kr