The Brazil Government said last week that it would “review” the automotive agreement it has with Mexico since 2002. AP

• Travel officials and entrepreneurs from the sector

Secretary of economy affects the commercial Treaty with the South American country to the solution of the conflict

Mexico City (FEB/08/2012)-news about a possible cancellation of the automotive agreement between Mexico and Brazil was to walk to the Ministry of economy.

Secretary Bruno Ferrari reported that a delegation comprising officials of the unit and entrepreneurs moved yesterday to the South American country to analyze the Mexico-Mercosur Economic Complementation Agreement between the two Nations.  

“We have no fear of competition, provided that it is on an equal footing”, said Ferrari, and clarified that the automotive theme is independent of the negotiations for a trade agreement between Mexico and Brazil.

He indicated that the priority now is to deal with automotive and from this the direction of that agreement will be analysed.

“Depending on that, we see what continues forward, to see how it can be the business relationship with that country, to see if we persist with our specific agreement to establish a Treaty of free commerce between the two countries”.

“They (Brazil) gave a signal that there is concern from his point of view in that sector and spare parts”.

Noted that despite that trade in the sector has increased “a lot” – eight thousand 500 million dollars-, remains “stunted for the relationship that could arise between the two countries”.  

The Brazil Government said last week that it would “review” the automotive agreement it has with Mexico since 2002, when the trend of trade between the two countries, favourable to our country in the automotive sector affects the Brazilian industry.

However, the economic value newspaper claimed that the South American country’s Government had already taken the decision to break the agreement.

Mexico was placed in 2011 as the third largest exporter of cars in Brazil, with a participation of 13.8% market share after Argentina and Korea in the South.

According to Brazilian Government figures, imports of vehicles from Mexico increased year 40%, the same proportion in which sales of Brazilian vehicles towards the Mexican market fell last.

This generated a deficit for Brazil of almost one thousand 700 million dollars in that sector. Even, last January, automotive production in Brazil suffered a fall of 19.2% compared to December.

TECHNICAL SPECIFICATIONS
A large market

Brazil represents the Mexican automotive industry the most important Latin American market, since in 2011 he placed that country 131 thousand 384 vehicles, which represented the most important sale of five years with a 425 percent increase.  

In importance by volume of sales for Mexico, the second site is for Argentina, to commercialize 69 thousand 061 units sold; Colombia with 46 thousand vehicles 472, Chile with 33 thousand 182 and Ecuador with nine thousand 348.  

The most important export for Mexico market continues to be United States, which in December 2011 demanded one million 362 thousand 425 units.   

Analysts consider that Brazil seeks to cancel the agreement of economic complementation between both countries to protect its domestic industry.  

In 2007, Mexico exported to Brazil 24 thousand 986 units, turnover increased in 2008 and reached its historical peak in 2011.

According to data of the AMIA, Brazil internal market represented last year three million marketing 425 thousand 674 units, representing an increase of 2.9% compared with the three million 328 thousand 948 vehicles were sold in 2010.