Brazil and Mexico to renew auto quotas for four years
Representatives of the two countries met in Rio de Janeiro over the past few days to hammer out a new agreement covering the automotive industry. The two countries agreed to renew the quotas just 10 days before the agreement signed in 2012 expired on March 18.
The 2012 agreement allowed automotive imports worth up to $1.6 billion annually for each country.
Brazil, which runs a large deficit in the automotive trade segment with Mexico, wanted to renew the quotas because the two countries had talked about restoring free trade in vehicles when the existing deal expired.
Mexico, for its part, wanted to end the quotas and allow free trade to expand its access to the Brazilian market.
The deal reached at the talks in Rio de Janeiro is being treated as an "understanding" on the Economic Complementation Agreement, the treaty that regulates bilateral trade in automobiles
The country's exports to Mexico fell 13.2 percent last year, while Mexico's exports to Brazil dropped 7.4 percent. ■