Trade Minister Cheong In-kyo speaks during a briefing in the central city of Sejong on Aug. 22, 2023. (Image courtesy of Yonhap)
SEOUL, Aug. 23 (Korea Bizwire) — South Korea and Paraguay have signed an economic partnership agreement on trade and investment, marking the second country in South America’s Mercosur bloc to clinch such a deal, officials said Friday.
Trade Minister Cheong In-kyo signed the Trade and Investment Promotion Framework (TIPF) with Paraguay during a meeting with his Paraguayan counterpart, Javier Gimenez, in Seoul, according to the Ministry of Trade, Industry and Energy.
A TIPF is a nonbinding agreement that calls for enhancing economic ties and facilitating cooperative exchanges in various areas. The agreement, however, does not include tariff-free terms like a traditional free trade agreement.
“The cooperation channel established with Paraguay’s trade ministry is significant as it sets the stage for full-fledged bilateral cooperation in trade, industry and energy,” Cheong said.
The ministry noted that Paraguay is an attractive trade partner, being one of the fastest-growing countries in the region, with its economy expanding 4.6 percent on-year in 2023.
Paraguay also has the potential to become a significant manufacturing hub for South Korean businesses in the region, the ministry added.
The ministry also pointed out that South Korean cars accounted for eight of the top 20 best-selling automobiles in Paraguay last year.
(Yonhap)
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