(Photo via revistafal.com)

Foreign Minister Jorge Faurie announced recently that trade talks between Mercosur and South Korea will begin soon.

La Nación reported that the South Korean Ambassador to Argentina, Jong-youn Choo, stated that recent political developments in Argentina and Brazil have facilitated a return to dialogue. “If the agreement with Mercosur comes into force, not only with trade, but also the investments between Korea and Argentina will increase, and Argentine products will become more competitive in the Korean market compared with products from Chile, Perú, and Colombia,” the ambassador said.

According to Argentina’s embassy in Seoul, bilateral trade between South Korea and Argentina was US $1.63 billion last year, down from US $1.75 billion in 2015. A new agreement between South Korea and Mercosur could be worth US $2.7 trillion, with substantial gains to Argentina.

The news of a prospective agreement follows a bilateral summit in March 2017 between South Korea and Argentina with Argentina’s Production Minister Francisco Cabrera to sign a memorandum of understanding (MOU) for a trade and investment dialogue. THE MOU will promote cooperation in defense and catalyze the development of ten northern states in Argentina by South Korean businesses.

After Argentina’s recent trade disputes with the United States in biodiesel and other areas, a prospective deal with South Korea will be welcome news for Mauricio Macri’s government.