Minister of Trade, Industry and Energy Kim Jung-kwan poses for a photo with Brazilian Minister of Development, Industry, Commerce and Services Marcio Fernando Elias Rosa at the Hyatt Hotel in Sao Paulo, Brazil, on Tuesday (local time). [Ministry of Trade, Industry and Energy]
Minister of Trade, Industry and Energy Kim Jung-kwan poses for a photo with Brazilian Minister of Development, Industry, Commerce and Services Marcio Fernando Elias Rosa at the Hyatt Hotel in Sao Paulo, Brazil, on Tuesday (local time). [Ministry of Trade, Industry and Energy]

A trade agreement between South Korea and Mercosur, the South American common market, is expected to move forward following President Lee Jae-myung's state visit to Brazil.

According to the Ministry of Trade, Industry and Energy, Lee held a summit with Brazilian President Luiz Inacio Lula da Silva on Monday (local time), during which the two sides agreed to advance negotiations on a Korea-Mercosur trade agreement and to establish a working-level consultative body to that end.

The ministry said it plans to "lay a solid foundation not only for resuming negotiations but also for accelerating a future deal, including exploring market access opportunities for each other's export goods, analyzing sensitivities around market opening, and deepening understanding of key issues."

During the visit, Minister Kim Jung-kwan held a bilateral meeting with Brazilian Minister of Mines and Energy Alexandre Silveira and issued a joint statement to strengthen cooperation on critical and strategic minerals, including rare earth elements.

It was the first time the two governments had set out a joint document specifying the direction of cooperation in the critical and strategic minerals sector.

The joint declaration named rare earth elements as a primary area of cooperation and outlined plans to expand collaboration across the entire mineral value chain, covering local processing and refining and value creation, technology transfer and R&D, responsible mining, workforce development, and investment in mid- and downstream sectors.

Kim proposed that Silveira visit South Korea later this year for follow-up consultations, and Silveira agreed.

Meanwhile, POSCO International signed an MOU with Meteoric Resources, which is developing a rare earth mining project in Caldeira, Brazil, covering a heavy rare earth offtake agreement and financial cooperation.

Kim also held separate meetings with both companies to discuss project timelines and government-level support measures aimed at securing a stable rare earth supply base.

In addition, the ministry hosted the Korea-Brazil Business Roundtable in Sao Paulo on Tuesday, attended by about 40 people including President Lee, officials from both governments and business representatives.

Companies and institutions at the event signed six MOUs covering joint industrial technology R&D, export and investment cooperation, AI-based epilepsy treatment innovation and digital health, meat supply chain cooperation and strategic partnership, and civil aviation and aerospace cooperation.

Including the POSCO International MOU, a total of seven private-sector MOUs were signed during the visit.

"This has been a valuable opportunity for both countries to create complementary and mutually beneficial growth opportunities based on each other's strengths," Kim said. "If South Korea's advanced technology and Brazil's abundant resources are combined, it will open new opportunities for companies in both countries."

Kim also signed a Korea-Brazil Industrial Technology Cooperation MOU with Brazilian Minister of Science, Technology and Innovation Luciana Santos in the presence of both heads of state.

In a separate bilateral meeting with Minister of Development, Industry, Commerce and Services Elias Rosa, the two sides agreed to continue discussing cooperation through the Korea-Brazil Trade and Production Integration Committee established in February.


oskymoon@heraldcorp.com