[Reuters, Sao Paulo 9]-Brazil and Mexico have started free trade agreement (FTA) negotiations. Both governments revealed on the 9th. While trade conflicts between the United States and China may hinder the growth of the world economy, the two major economic powers in Latin America aim to deepen trade relations.
Marcos Troijo, Deputy Secretary for International Trade, Brazil's Ministry of Economy, announced that formal FTA negotiations with Mexico have begun. On that basis, Mexico pointed out that it has been focusing on trade with the United States and Canada, which are parties to the North American Free Trade Agreement (NAFTA), but is seeking to diversify its trading partners. Brazil indicated that it would be possible to increase agricultural exports to Mexico.
After confirming that the Mexican Ministry of Economic Affairs is also negotiating, he said, “The future path is not clear, but we are working on it.”
Troijo said that the trade between Brazil and Mexico has been less than expected, but the new trade agreement "US-Mexico-Canada Agreement (USMCA)" to replace NAFTA has brought about changes. He eagerly wanted to expand exports.
The Mexican Parliament ratified USMCA in June, but the United States and Canada have not yet ratified.