Mexico Dismisses Free Trade Agreement and Prioritizes Cooperation with Brazil

Written by Carla Teles

Published on 28/08/2025 at 18:16

O México surpreende e descarta um acordo de livre comércio com o Brasil. Entenda a nova estratégia de cooperação anunciada pela presidente Sheinbaum.

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In Meeting With Geraldo Alckmin, President Claudia Sheinbaum Surprises By Focusing On Cooperation And Updating Old Agreements, Leaving A Broad Trade Treaty For Later.

The President of Mexico, Claudia Sheinbaum, met with a Brazilian delegation led by Vice President Geraldo Alckmin on Thursday (28). During the meeting in the Mexican capital, the creation of a free trade agreement was ruled out. The focus, according to the Mexican leader, will be on strengthening bilateral cooperation.

High-Level Bilateral Meeting In Mexico City

The capital of Mexico was the stage for an important meeting between authorities from the two countries. The Brazilian delegation, in addition to Geraldo Alckmin, included Ministers Carlos Fávaro (Agriculture) and Simone Tebet (Planning), as well as Deputy Foreign Minister Maria Laura da Rocha. Directors of companies and state agencies were also part of the group.

Focus On Collaboration, Not On Free Trade

Even before the meeting, the Mexican position was already clear. “We are not thinking about a free trade agreement, but rather about collaboration and cooperation to some extent”, said the President of Mexico, Claudia Sheinbaum, at a press conference.

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Updating Agreements And Strategic Sectors

The Secretary of Economy of Mexico, Marcelo Ebrard, had previously indicated that the countries would sign memorandums of understanding for cooperation. He reiterated that the goal is not a trade agreement like the one Mexico has with the U.S. And Canada.

The intention is to update an existing complementarity agreement signed over 20 years ago. “What we will do is try to update it, […] but we are not considering a free trade agreement at this time,” concluded Ebrard.

Among the proposals discussed is Mexico’s interest in reviewing provisions that limit its exports, particularly in the automotive industry. Other areas of cooperation include agreements between sanitary regulatory agencies and deep-water exploration, where Brazil has significant expertise.

Billion-Dollar Trade Between The Largest Economies In Latin America

The trade exchange between Brazil and Mexico is significant. Last year, the trade between the two largest economies in Latin America reached US$ 13.6 billion. The trade balance was favorable to Brazil, which exported a total of US$ 7.8 billion to the Mexican market.

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Mexico Dismisses Free Trade Agreement and Prioritizes Cooperation with Brazil

In Meeting With Geraldo Alckmin, President Claudia Sheinbaum Surprises By Focusing On Cooperation And Updating Old Agreements, Leaving A Broad Trade Treaty For Later.

High-Level Bilateral Meeting In Mexico City

Focus On Collaboration, Not On Free Trade

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Mexico Dismisses Free Trade Agreement and Prioritizes Cooperation with Brazil

In Meeting With Geraldo Alckmin, President Claudia Sheinbaum Surprises By Focusing On Cooperation And Updating Old Agreements, Leaving A Broad Trade Treaty For Later.

High-Level Bilateral Meeting In Mexico City

Focus On Collaboration, Not On Free Trade

Updating Agreements And Strategic Sectors

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Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

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