Brazil and Mexico begin free trade negotiations

Brazil and Mexico have begun negotiations for a free trade agreement, according to the Ministry of Economy’s Special Secretary for Foreign Trade and International Affairs, Marcos Troyjo.

For Troyjo, Mexico has traditionally focused on trade with its North American Free Trade Agreement (NAFTA) partners but wants to diversify its trade. According to him, Brazil would be able to export more agricultural products to Mexico, which is the second largest economy in Latin America.

“Trade between Brazil and Mexico has always been below desired volumes. This was partly because Mexico has given preferential treatment to other trading partners, including the US and Canada,” he said at a conference organized by the Brazil-China Business Council in São Paulo. “Now the agreement between Mexico, the US, and Canada has changed. Brazil has a more immediate interest in increasing its exports of agricultural commodities to Mexico,” he added.

Currently, there is already a free trade agreement of cars and auto parts between the two countries. Mexico is the eighth main destination of Brazilian exports.

Sources: Folha de S. Paulo and O Petróleo

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