Mexico and Brazil sign Free Trade Agreement in light vehicle trade | FASTENER EURASIA MAGAZINE
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Mexico and Brazil sign Free Trade Agreement in light vehicle trade

In a statement issued by the Mexican Government on 19 March 2019; it was stated that there was an agreement with Brazil on the free trade between the two countries with a requirement to include 40% domestic content. The agreement between the two major economies of Latin America is a reflection of Mexico's market diversification policies and is expected to revive the intra-regional trade. 
 
Mexican Economy Minister noted that in 2018, Mexico recorded a trade surplus of USD 868 million (3 times more than in 2017) in the automotive sector trade with Brazil. 
 
On the other hand, the Brazilian automotive industry has been protected by subsidies and taxes in recent years, and domestic producers do not favor said agreement.