Brazil and Mexico have intensified their efforts to strengthen trade relations, meeting at high levels to discuss opportunities for expanding cooperation beyond traditional partners.
Regular Meetings to Develop Trade
According to the Financial Times, Mayor of Mexico City Claudia Sheinbaum and President of Brazil Luiz Inácio Lula da Silva met at least four times regarding this matter. Additionally, Brazil's Trade Secretary planned a visit to Mexico City in August for a detailed discussion of trade partnerships.
Benefits for Both Countries
Mexico looks to provide Brazil with what it lacks, while Brazil will supply Mexico with what it does not have. Investment opportunities for Mexico include aerospace and pharmaceuticals. Brazilian officials noted that the country's agribusiness and industrial sectors aim to increase exports to Mexico.
Risk Reduction Policy and New Agreements
A senior Brazilian diplomat pointed out that relations with the U.S. involve high risks, which is why Brazil is implementing a 'risk reduction policy.' Mexico is also gearing up to renegotiate its USMCA agreement with Canada and the U.S. Meanwhile, both countries have yet to agree on expanding their current agreement or initiating negotiations for a completely new trade deal.
Given the current state of global trade relations, Brazil and Mexico's efforts to enhance economic partnerships could be a significant step in developing their strategic interaction.
