(Ana Isabel Martinez and Alonso Soto – Reuters)
Grappling with tumbling auto sales and weak economic growth, Brazil wants to derail a pact that would allow unlimited imports of cars from Mexico, sources familiar with the situation say, in a move that could stoke trade tensions between Latin America’s largest economies.
A treaty between the two nations and auto manufacturers, which sets quotas on how many light vehicles Mexico and Brazil can sell each other, expires in March. Auto trade between the two was then supposed to be fully liberalized.
Brazil this week invited a Mexican government delegation to a meeting in Brasilia between Feb. 20 and 25 for talks to revamp the treaty. Click here to read more.
Related: $1.2b trade deficit: Brazil Seeks to Renew Auto Quota Pact with Mexico (Customs Today)