Trade Agreement Mexico Brazil

Yet Mexico and Brazil “really don`t ego each other,” says Mauro Guillén, Wharton`s management professor and director of the Lauder Institute. In 2010, Mexican exports to Brazil accounted for only $3.78 billion, or about 1.3% of Mexico`s total exports of $298 billion. That`s almost exactly the same amount ($3.76 billion) as Mexican exports to Colombia, a much smaller nation, this year. Mexico`s imports from Brazil amounted to $4.3 billion, or just under 1.5% of Mexico`s total imports, or $301.4 billion. As Mr. Guillén points out, Mexico negotiates a lot with the United States, but much less with Europe and Latin America. Brazil`s main trading partners are China, followed by the United States, Argentina and European nations such as Germany and the Netherlands. Mexico has been trying to diversify its trading partners since U.S. President Donald Trump warned of the possible death of the North American Free Trade Agreement (NAFTA), which has supported Mexico`s foreign trade for a quarter of a century. U.S. and Canadian lawmakers have yet to ratify the agreement. When news of the revised agreement was announced, some Mexican trade analysts criticized their own government for giving in too quickly to Brazil`s demands for the new restrictive export caps. In the Mexican newspaper El Universal, columnist Alberto Barranco wrote: “At the same time, while the United States, in one of its protectionist approaches, is about to impose extraordinary [anti-dumping] tariffs on imports of refrigerators [from Mexico] and South Korea, Mexico is yielding on all points to Brazil`s demands to maintain the ACE [economic complementarity agreement].

Penalty taxes against Elektrolux and Mabe of Mexico, as well as for LG Cooled and Samsung of Korean Production will likely be imposed by the U.S. government in response to a petition from Whirlpool Corp. (the Department of Commerce approved the petition, and a final decision of the U.S. International Trade Commission is scheduled for April 30.) Two years later, this optimism was met by a dispute over the fate of “ACE 55”, the economic complementarity agreement that already established rules in 2003 for the gradual deregulation of automobile trade between Brazil and Mexico. Under protectionist pressure from Brazil, Mexico agreed in March to review the ACE 55 agreement to limit the increase in car exports to Brazil to an average annual value of about $1.55 billion over the next three years. Mexican auto exporters will strike a big blow: last year, Mexican car exports to Brazil reached 134,000 units, for a total of $2.1 billion, compared to only 53,000 units in Brazil in 2009. In recent years, several instruments have been signed between the two countries, including the Cooperation and Investment Facilitation Agreements; Air services and mutual recognition of cachaa and tequila as geographical indications and distinctive products. The Investment Cooperation and Facilitation Agreement, signed in 2015, aims to encourage mutual investment through an intergovernmental dialogue mechanism. The agreement provides for the dissemination of business opportunities, the exchange of information on the legal framework and the adoption of a mechanism for preventing and resolving disputes. In addition to the agreement with Brazil, Mexico has renewed car sales quotas with Argentina for the next three years, after which there will be free trade, according to the ministry. Under far-right President Jair Bolsonaro, Brazil has begun talks on a trade deal with the United States and hopes that a hard-won pact between the European Union and the Mercosur bloc of South American countries will be ratified.

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