MercoPress. South Atlantic News Agency

Latam largest economies plan trade accord with most tariffs cut to zero

Mexican Deputy Economy Minister Beatriz Leycegui

Mexican Deputy Economy Minister Beatriz Leycegui said the government aims to reach a trade accord with Brazil to reduce tariffs to zero on the majority of goods sold between Latin America’s two biggest economies.

Officials may agree to give “special treatment” to sensitive products in some industries including food and shoes, Leycegui said in Mexico City. That may include retaining some tariffs, applying quotas or delaying the reduction of tariffs, she said.

“What we’re seeking is liberalization on the great majority of goods after a period of time of being taxed,” Leycegui said.

Mexico and Brazil last week reached a preliminary agreement on an accord that address tariffs, investment, services, intellectual property and government purchases. The countries are seeking to boost trade after the global economic crisis decreased exports to the U.S. and Europe last year. A 2002 accord between the countries cut import tariffs on 800 goods.

Mexico expects its private sector to agree to the deal, Leycegui said. Mexican agricultural producers are among those opposing a deal claiming Brazil has many non-tariff barriers to trade, Armando Paredes, president of Mexico’s largest business group, said in March.

Total trade between Mexico and Brazil fell to 5.9 billion USD in 2009 from 8.6 billion in 2008, according to Mexico’s Economy Ministry.

Leycegui said Mexico and Brazil have yet to begin formal negotiations and haven’t yet set a date to that purpose.