The Latin American dream: greater integration. The two largest economies in this region hope to increase their trade ties , a bilateral project that has been promoted in recent decades but has not made substantial progress due to the protectionist policies of both countries.
Business representatives from Brazil and Mexico met on Monday to sign a memorandum of understanding (MoU) that seeks to promote cooperation to strengthen trade relations, establish the bases for the organization of trade missions and the development of trade promotion actions to generate new business opportunities .
The signing of this MoU took place between the Brazilian Export and Import Promotion Agency (ApexBrasil) and the Mexican Business Council for Foreign Trade, Investment and Technology (Comce) , during the Mexico-Brazil Business Forum event.
“I believe that Brazil and Mexico have not taken advantage of their full potential. We must work together on an equitable trade relationship, where everyone wins. I am convinced that we can achieve great things together, but we must sit down and talk, see what is good for Mexico and for Brazil, and act accordingly,” said Luiz Inácio Lula da Silva, president of Brazil, who attended the forum.
The trade opportunity for both economies is broad, although the exchange of goods between the two largest economies in Latin America is barely 2% of their total trade. In the case of Mexico, its foreign trade is focused on its relationship with the United States and Canada, where just over 80% of products are exported, while Brazil has built a very solid trade exchange with China over the last few years.
Currently, Mexico and Brazil have signed two Economic Complementation Agreements (ACE), 53 and 55 , the latter focused on the automotive industry, for which there have been rounds of negotiations in the recent past to deepen trade opportunities without progress so far; even the most optimistic have proposed the signing of a free trade agreement.
Brazil is Mexico’s main trading partner in Latin America, as well as the leading export destination and the leading supplier of Mexican imports from the region.
Lula da Silva said he was hopeful of making progress on this project with Mexico after the change in the federal government, where the country’s first female president, Claudia Sheinbaum , will take office .
“We are going to have a very close relationship,” said Marcelo Ebrard, the Secretary of Economy appointed by the next federal administration, who was present at the event and stressed the political will that is currently being shown to advance closer trade relations with Brazil.
For his part, Jorge Viana, president of ApexBrasil, indicated that the agreement between both countries would be an opportunity to help trade in neighboring Latin American countries .
Francisco Cervantes, president of the Business Coordinating Council (CCE) , mentioned that a new moment is being experienced between both countries with an “enormous potential to build this international bridge. With this rapprochement and exchange, the path continues to be built so that these two economies continue to grow closer with will and cooperation.”
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