Alckmin arrives in Mexico and meets with the private sector

Andreia Verdélio, reporter for Agência Brasil - Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, began, this Wednesday (27), a two-day working agenda in Mexico in search of strengthening political relations and expanding trade and investment ties between the two countries. The delegation landed in Mexico City last night (26) and today already met with representatives of private sector entities.

The agenda's highlight is an audience with the President of Mexico, Claudia Sheinbaum, at the National Palace, this Thursday (28).

"The task is to bring these two largest democracies and economies in Latin America even closer together. Through mutual investment, economic complementarity, foreign trade, tourism, electronic visas, bringing these two great nations closer together so we can have more trade, more investment, more jobs, and more opportunities," Alckmin said during a breakfast with business leaders.

On the mission's agenda, the government hopes to unlock opportunities in areas such as industry, agribusiness, health, and technology. The vice president advocated for updating Economic Complementation Agreement No. 53 (ACE 53), signed with Mexico in 2002, which deals with the elimination or reduction of import tariffs for approximately 800 tariff positions.

"It can be much broader still, including new products and services for export and import. Foreign trade is a two-way street."

In 2024, trade between Brazil and Mexico totaled US$13,6 billion. Brazilian exports totaled US$7,8 billion, with highlights including sales of passenger cars, poultry meat and offal, and vehicles for the transportation of goods. Imports of Mexican products totaled US$5,8 billion, with highlights including vehicle parts and accessories, passenger cars, and goods vehicles.

Canada

Amid the United States' new policy of raising tariffs on trading partners, the Brazilian government's guidance is to expand its relationship with other countries and diversify its trade agenda. Also on the agenda is a mission by the Brazilian Trade and Investment Promotion Agency (ApexBrasil) to Canada on September 10th and 11th.

ApexBrasil President Jorge Viana said the agency's office in the United States, which also covers Canada and Mexico, is working to increase its presence in those countries.

"They are two extraordinary countries, with very similar logistics to the United States. The United States is important, and we will continue working to eliminate this tax on more products, which is inexplicable because we are a major trading partner for them as well. But working with Mexico and Canada is our mission."

Of everything exported by Brazil to the United States, 35,6% is subject to a 50% tariff.

On April 2, Trump imposed tariffs on countries based on the size of the US's trade deficit with each nation. Because the US has a trade surplus with Brazil, the lowest tariff, 10%, was imposed at the time.

However, on August 6, Trump imposed an additional 40% tariff against Brazil in retaliation for decisions that, according to him, would harm the US big tech companies And in response to the trial of former president Jair Bolsonaro, accused of leading an attempted coup d'état after losing the 2022 elections.

Vice President Geraldo Alckmin recalled that Brazil is already negotiating a free trade agreement with Canada through Mercosur, the trade bloc of South American countries. However, the talks were stalled in 2021. This week, Alckmin met with Canada's Minister of International Trade, Maninder Sidhu, and they agreed that conditions exist for resuming negotiations.

Missions

Jorge Viana reported that, since 2023, ApexBrasil has carried out 16 international missions with President Luiz Inácio Lula da Silva and four with Vice President Alckmin, in addition to another 10 with other government representatives.

A member of the Brazilian delegation in Mexico, the Minister of Agriculture and Livestock, Carlos Fávaro, praised President Lula's decision to resume commercial diplomacy from the beginning of his term. Within his ministry, 409 new markets were opened for Brazilian products in a period of 2 years and 8 months, which, according to him, "greatly minimizes" the impacts of the increased tariffs imposed by the United States.

"In this time of uncertainty, with a new trade model that the United States is trying to impose on the world, imagine if we hadn't done so much. It seems like it was predestined, as a mission at the beginning of the administration, the president asking us to reestablish good trade relations, to travel the world in search of new opportunities," said Fávaro.

"And the largest economic result of 409 open markets is Mexico, with more than US$800 million and 50% of the economic result," he told the businesspeople, highlighting the opportunities for new partnerships.

Also on the delegation's agenda this Wednesday is a meeting with the chairman of the Mexican Senate's Foreign Relations Committee, Alejandro Murat Hinojosa, and meetings with three Mexican ministers: Agriculture and Rural Development, Julio Berdegué Sacristán; Foreign Affairs, Juan Ramón de la Fuente; and Economy, Marcelo Ebrard. The first day of the mission will conclude with the Brazil-Mexico Business Meeting.

Opening the second day of work tomorrow, Alckmin will receive the keys to Mexico City from Mayor Clara Brugada Molina, in recognition of the importance of the visit. There will also be a meeting with the country's president, Claudia Sheinbaum, and a meeting with the Secretary of Health, David Kershenobich.

Finally, the delegation will hold a series of meetings with Mexican businesspeople and conclude the mission at an event organized by the Brazilian Animal Protein Association.