Latin Business Chronicle, 5/1/12
When Mexican president Felipe Calderon met with Brazilian president Luiz Inacio “Lula” da Silva in Cancun in 2010, the leaders of Latin America’s two largest countries announced plans to begin negotiations on a comprehensive free-trade agreement between Brazil and Mexico.
A few months later, a delegation of Brazilian officials traveled to Mexico to begin preparatory work for a hypothetic reduction of tariffs on all goods traded between the two countries. “We want to partner with Brazil,” Calderon said. “The strongest economies in Latin America are Brazil and Mexico. Imagine what we can do together; imagine if we complement each other.”
Two years later, that sort of optimism has been drowned out by a dispute over the fate of “ACE 55,” the Economic Complementarity Agreement that established rules for gradually deregulating automotive trade between Brazil and Mexico back in 2003.