Mexico’s public projects open to Korean firms

MEXICO CITY -- Korean companies will be given bidding rights for Mexico’s public development projects, which are customarily limited to countries that have a free trade agreement with the Central American country. 

Negotiations for an FTA between Korea and Mexico began in 2007, but have been stalled since 2008 due to opposition from Mexican business circles.

President Lee Myung-bak requested his Mexican counterpart Felipe Calderon during their summit talks here on Thursday to let Korean companies take part in the bidding for Mexico’s infrastructure projects, Lee’s spokesperson Kim Eun-hye said. 

“The two leaders vowed to make joint efforts to resume the FTA talks, but we still need to wait for substantial progress,” Kim told reporters. “President Calderon said favorable conditions in various areas will be offered to allow Korean companies to participate in Mexico’s government procurement although it has not signed an FTA with Mexico.” 

Korean companies are mostly interested in Mexico’s oil refinery projects, including modernization of old refineries, Kim said. Mexico’s oil refinery-related orders amounted $2 billion between 2008 and 2009. 

Korean firms are also tapping bidding chances in cogeneration power plants and thermal power station projects.

President Lee Myung-bak and his Mexican counterpart Felipe Calderon on Thursday hold a joint press conference following a summit meeting in Mexico City. Yonhap News