Abstract

QUINTANA ROMERO, Luis; MUN, Nam Kwon  and  ALVAREZ-GARCIA, José. Economic effects of trade complementarity in the negotiation of a free trade agreement between Mexico and South Korea. El trimestre econ [online]. 2023, vol.90, n.358, pp.497-529.  Epub June 09, 2023. ISSN 2448-718X.  https://doi.org/10.20430/ete.v90i358.1666.

Mexico and South Korea have progressed in their commercial affairs since they began diplomatic relations in 1962. Currently, the possibility of negotiating a free trade agreement between both economies is being raised. The objective of this research is to evaluate the potential effects of such a trade agreement for both countries. For this, indexes of commercial intensity, revealed comparative advantages, complementarity, and commercial similarity are used. The results show that these two countries have intensified their trade relations, turning Mexico into South Korea’s main trading partner in Latin America and giving rise to a complementary trade structure with advantages for Mexico in the trade of mineral fuels, lubricants, machinery, and transport equipment. Also, an asymmetry was found in the tariff rates that could generate commercial advantages, especially for Mexico in the primary sector in case of the signing of a free trade agreement.

Keywords : Mexico-Korea free trade agreement; trade complementarity; comparative advantages; economic impacts; F13; F14; F15.