Mexico, Brazil in talks for an automotive trade deal
Mexico and Brazil currently hold talks to reach a trade agreement for the automotive industry, a sector that represented 42% of the US$ 9 billion in goods that both countries exchanged last year, reported Notimex.
Lucas Frota, head of Commercial Affairs of the Brazilian Embassy, revealed last week in a meeting with businessmen in Nuevo Leon that the rules of origin will soon be negotiated and, according to the schedule, an agreement is expected in early 2019.
“We are looking for clear rules of origin to get as close as possible to a free trade agreement in this sector, the commitment is enormous,” said the diplomat.
According to Forbes, Mexican companies currently hold investments in Brazil for more than US$ 30 billion in sectors such as telecommunications led by Carlos Slim with Claro, as well as in the food segment by FEMSA and Bimbo.
Brazilian investments in Mexico fluctuate between US$ 25-30 billion, being the plant Etileno XXI plant in Veracruz one of the most significant, of around US$ 5.6 billion.