A Study on the Trade Activation between Korea and Mexico after the COVID-19 Pandemic: Exploring Key Industries and Entry Strategies

Mexico's strategic location to the south of the United States, the largest market in the world, has allowed it easy access to the North American market.It has also diversified its commerce by establishing Free Trade Agreements (FTA) with other nations.Historically, Mexico's manufacturing sector was built on the North American Free Trade Agreement (NAFTA).Today, through the United States-Mexico-Canada Agreement (USMCA) program, Mexico serves as a manufacturing base in North America and attracts foreign capital investment due to its superior technology, lower labor and logistics costs than rival nations, and superior technological capabilities.South Korea imports crude oil, mineral resources, auto parts, steel, semiconductors, and display modules from Mexico and exports auto parts, steel, car components, and medical diagnostic devices to Mexico.The two countries have held several negotiations to establish economic cooperation and FTA but without any success.This study examines commerce after the COVID-19 Pandemic between South Korea and Mexico, the country's biggest trading partner in Latin America.By examining Mexico's main industries and the economic policy framework of the current Mexican government, this paper suggests ways for Korea to enter the Mexican industry and market in the areas of vehicle manufacturing, semiconductor cluster development, and mining development.