Introduction
The erosion of Mexico’s foreign policy under the two governments of Morena has led to neglect in maintaining relationships with allied countries, including South Korea. The recent imposition of tariffs by President Claudia Sheinbaum’s government echoes a dark period in Mexico’s trade history: import substitution or, as some might say, “Viva Made in Mexico (even if poorly made)!”
A Blast from the Past: Mexico’s Trade History
In the 1970s and 80s, Mexico’s public transportation buses proudly displayed “Made in Mexico” on their dashboards, with Dina being one such brand. Numerous products boasted of being “proudly” manufactured in Mexico, including bicycles. While I replaced my bicycle every six months, my Italian neighbor’s imported bike lasted for years.
The reason, as I later learned from David Ricardo, was the concept of comparative advantage. Fifty years later, after a period of trade liberalization, President Sheinbaum’s government penalizes South Korea as if it represented the axis of evil.
South Korea: A Vital Trade Partner
South Korea is Mexico’s fourth-largest trade partner, with bilateral trade volume growing fivefold over the past two decades. From $3.9 billion in 2000, the figure reached $29 billion in 2024. Instead of imposing tariffs on South Korea, Mexico should learn from its forward-looking approach.
South Korea’s Transformation
Once a “hermit kingdom” invaded over 400 times and under Chinese and Japanese influence for centuries, South Korea now showcases a modern and innovative face to the world. The 1997 crisis, originating in Thailand, spread to East Asia, affecting the South Korean won. The IMF lent Corea $57 billion, marking a turning point.
President Kim Dae-jung chose pop culture to rebrand Corea, integrating Hallyu (Korean Wave) into diplomacy. Government-funded creative agencies within ministries promoted this cultural export, enhancing Corea’s global image.
Mexico’s Missed Opportunity
Mexico has much to gain from studying South Korea’s approach. However, President Sheinbaum’s foreign policy, focused on the past, has overlooked this valuable lesson. The sovereign rhetoric crumbles in the face of actions, as Mexico’s realpolitik targets South Korea to avoid upsetting then-President Donald Trump.
Key Questions and Answers
- What is the issue at hand? Mexico’s recent tariffs on South Korea, which is a crucial trade partner.
- Why are tariffs problematic? These tariffs disregard the long-term benefits of a strong trade relationship and mirror a past era of protectionism.
- What can Mexico learn from South Korea? Mexico could adopt South Korea’s forward-looking approach to trade, integrating cultural exports into diplomacy and fostering innovation.
- Why is South Korea’s transformation significant? South Korea successfully rebranded itself through cultural exports and diplomacy after overcoming the 1997 financial crisis, showcasing resilience and adaptability.
