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UPDATE 1-Mexico sees auto trade deal with Brazil next week
March 1, 2012 / 9:17 PM / 6 years ago

UPDATE 1-Mexico sees auto trade deal with Brazil next week

* Mexico says expects car deal with Brazil next week

* Mexico says depends on Brazil giving something back (Adds comments and background)

MEXICO CITY, March 1 (Reuters) - Mexico hopes to reach a deal with Brazil next week to keep alive a bilateral auto trade agreement between Latin America’s top two economies, Economy Minister Bruno Ferrari said on Thursday.

Brazil’s government is insisting on a fixed upper limit on vehicle imports from Mexico and several other conditions in return for continuing a bilateral auto trade deal.

“Whatever Brazil is asking for, Mexico will be asking for from Brazil. This should be reciprocal,” Ferrari told a news conference.

Mexico is the third-largest exporter of cars to Brazil, outpacing Brazil’s auto trade with Mexico. Brazil said it wanted to suspend the countries’ auto trade deal early in February and demanded Mexico take more of its buses and trucks.

“We want to get this done with as soon as possible,” Ferrari said, pointing to an upcoming meeting between officials from both sides in Mexico. “We should be reaching an agreement next week.”

Brazil’s move follows a surge in its real currency which puts its manufacturers at a disadvantage to imports from other countries.

The relatively weaker Mexican peso has boosted exporter profits, helping units of American, Japanese and European automakers such as General Motors, Nissan and Volkswagen export a record 2.1 million vehicles from Mexico last year. (Reporting by Adriana Barrera; Editing by Diane Craft; Writing by Michael O‘Boyle)

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