Paraguay is the second country in Mercosur, the South American trade bloc, with which Korea has signed a TIPF, following Brazil.
The agreement was signed by Korea's Minister for Trade Cheong In-kyo (right) and Paraguay's Minister of Industry and Commerce Javier Giménez.
Paraguay, which recorded a 4.6 percent economic growth last year, offers competitive advantages such as lower wages and tax rates compared to other nations of Mercosur. The framework is expected to not only expand exports but also potentially serve as a manufacturing base for Korean companies within the Mercosur region.
"This cooperation channel with Paraguay's Ministry of Industry and Commerce is significant as it establishes the first foundation for the two countries to actively pursue economic cooperation in trade, industry, and energy sectors," said Minister Cheong.
Following the signing, both ministers discussed ways to utilize the TIPF for expanding economic cooperation, collaborating in industry and energy sectors, and advancing the Mercosur-South Korea Trade Agreement (TA) negotiations. They agreed to further develop cooperative agendas through the Trade and Investment Cooperation Committee (TICC) established under the TIPF.
