Brazil has taken steps to expand bilateral trade and investments with Mexico over the next ten years, Portal Brazil stated in a release on Tuesday.
On an official visit to Mexico, Brazilian president Dilma Rousseff met with Mexican president Enrique Peña Nieto, and signed a series of agreements to prioritize the expansion and deepening of the Economic Complementation Agreement No. 53 (ACE-53).
"The numbers are short of potential for trade and investment in both countries. With the agreements, we open a new path. The agreement included 800 products. It seems a lot, but we can reach six thousand products," said Dilma Rousseff, who was received at the National Palace by the Mexican president.
According to Dilma, trade between the two countries closed with a volume of $9 billion in 2014, representing an increase of almost 100 percent compared to 2004. The Mexican investments in Brazil add up to a stock of $22 billion.
This year was a breakthrough to the automotive agreement between Brazil and Mexico to exchange parts and assembled cars, the Brazilian president mentioned. The president highlighted the Ethylene 21 project that involves about $5 billion investment between Braskem and Idesa companies, and the $600 million Brazilian investment in a steel plant
"The agreements signed Tuesday are essential to modernize and upgrade the trade and investment rules. These agreements will leverage our development and make a qualitative leap in relations with Brazil," said Peña Nieto.
In addition, the leaders signed an agreement to promote tourism, air services, fishing and aquaculture, and environmental cooperation. The two presidents also signed a joint declaration to the "origin recognition" of tequila as a Mexican product and cachaça as a Brazilian.
Under the agreement, import and marketing of Cachaça in Mexican territory will only be allowed to Cachaça produced in Brazil in accordance with the laws and regulations in Brazil. Similarly, the import and marketing of Tequila in Brazil will only be allowed to Tequila produced in Mexico in accordance with the laws and regulations in Mexico.
In addition to the signing of the Cooperation and Investment Facilitation Agreement and as part of the ACE-53 deepening, Brazil and Mexico also decided to negotiate disciplines consistent with the WTO and the Latin American Integration Association (ALADI).
Brazil and Mexico are the two largest economies in Latin America. Together, the GDP of the two countries account for about 60 percent of the Latin American market. The combined population is estimated at 320 million.
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