Renewal of the Trade Alliance Between Mexico and Brazil: A Call from Lula
13:29 30/09/2024 - PesoMXN.com
Brazilian President Luiz Inácio Lula da Silva emphasized on Monday the need to restructure trade agreements with Mexico, welcoming Mexican investments. “It’s urgent to redo and reformulate our trade agreements to improve the quality of life for both Mexicans and Brazilians,” Lula stated at the Mexico-Brazil Business Forum.
Lula highlighted the importance of the United States in Mexican trade, though he stressed that Mexico should also look towards the South. “Brazil offers many opportunities; it’s a country with 220 million inhabitants, a substantial GDP, and a significant economic stake,” the Brazilian president reported. He further indicated that it’s time for both countries to evolve into more advanced economies, leveraging the intellectual capital from their universities. “We have science and technology; all we need is to believe in ourselves and define the scale we want to reach.” He advocated for moving beyond dependency on the U.S. and China, instead seeking a stronger partnership between Mexico and Brazil. “It’s crucial for us to sit down and discuss what benefits both countries. We must explore what we can exchange and do it more openly, aiming to become not just a $4 trillion economy, but one of five or six trillion, rather than remaining in the shadows of China and the U.S. or waiting for a new Cold War. I’m not looking for conflicts with the U.S., China, or India. My goal is to do business and grow economically, boosting our industries and agriculture, while investing in artificial intelligence that benefits our communities and our future,” he concluded.
He acknowledged Andrés Manuel López Obrador’s efforts to facilitate trade and mentioned Claudia Sheinbaum as someone who can enhance this relationship. “I appreciate López Obrador’s approach and the effective way he has managed trade with Brazil. I’m confident that Claudia will learn from these practices and her challenge will be to keep improving for the future.” Trade ties between Brazil and Mexico date back 20 years; however, both countries have evolved, so they seek to meet with the next government to establish a new agreement that, while not strictly a free trade deal, takes into account the interests of both sides. In light of Mexico’s strong relationship with the U.S. and Brazil’s with China, Marcelo Ebrard, who will be the Minister of Economy under Sheinbaum, noted there is “ample potential” for collaboration in areas such as aerospace, automotive industry, medical and pharmaceutical equipment, as well as electronics, artificial intelligence, renewable energy, food sector, and infrastructure. “Since 2003, Mexico has had an economic complementarity agreement with Brazil, which needs to be updated, as the development of our relations surpasses that agreement in the commercial sphere. I must highlight that there is a shared vision between both governments; while our main exports go to China and the U.S., the interest in strengthening our relationship is present whenever there is political will,” Ebrard concluded.
Final comment: The importance of diversifying trade relations is fundamental for the economic growth of any country. In this regard, opening up to Brazil, beyond maintaining ties with the U.S. and China, could provide Mexico with a stronger foundation to face future economic crises while fostering innovation and sustainable development in both nations.
