Brazil wants Mexico to cap vehicle exports | Albuquerque Express

Brazil wants Mexico to cap vehicle exports

Albuquerque Express (IANS) Tuesday 13th March, 2012

Brazil's government wants Mexico to impose quotas on its own auto exports to the South American nation to ensure the total value does not exceed $1.4 billion over the next three years, the development, industry and foreign trade ministry said.

The request was contained in a letter sent to Mexico's economy and foreign secretaries, Bruno Ferrari and Patricia Espinosa, who head a Mexican delegation reviewing a bilateral free-trade agreement on cars, the official Agencia Brazil news agency said.

The ministry did not give more details about the letter and said it will only provide more information after receiving a response from the Mexican government.

Brazil says vehicle imports from Mexico rose last year by 40 percent even as Brazilian auto exports to Mexico declined by the same percentage, resulting in a trade deficit in that sector of nearly $1.7 billion.

In February, Brazil called for a revision of the countries' 2003 bilateral Economic Complementation Accord, which regulates tariff-free trade in vehicles and car parts.

President Dilma Rousseff's government also suggested the possibility of expanding the 2003 accord, which is currently limited to auto parts, passenger cars, trucks and heavy vehicles.

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