Skip to: Content
Skip to: Site Navigation
Skip to: Search


Latin America Blog

Frenemies unite? Brazil strengthens ties with Mexico through investment.

An $8.1 billion investment in Mexico by a Brazilian company is good news for both countries – and a twist in the ongoing Brazil vs. Mexico economic debate.

By James BosworthGuest blogger / October 3, 2013



Mexico City

• A version of this post ran on the author's blog, bloggingsbyboz.com. The views expressed are the author's own.

Skip to next paragraph

Recent posts

Brazil's Odebrecht plans to invest $8.1 billion in Mexico's infrastructure in the next five years (Reuters, FT).
 
Brazil hasn't invested much in Mexico previously. Since 1999, Brazilian companies have only invested $1.2 billion total including $61.3 million last year. The Odebrecht, [which works in fields including construction, chemicals, and engineering], investment by itself will be an increase by an order of magnitude in the economic links between the two countries.
 
So, even as short term economic news about both Mexico and Brazil appears to be pessimistic (confounding the whole Mexico vs Brazil debate), this investment is good news for both and a big bet on each other.

 
Almost half of the company's announced investment will be an ethylene plant. Another large portion will go to a hydroelectric dam and a highway. All of those announced projects are in Veracruz. Mexico indicated the Brazilian company will be involved in ethanol and sugar production. There are also discussions of Odebrecht investing in roads, airports, and other transportation infrastructure that would go beyond the planned $8 billion.

James Bosworth is a freelance writer and consultant based in Managua, Nicaragua, who runs Bloggings by Boz.

The Christian Science Monitor has assembled a diverse group of Latin America bloggers. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here.

  • Weekly review of global news and ideas
  • Balanced, insightful and trustworthy
  • Subscribe in print or digital

Special Offer

 

Doing Good

 

What happens when ordinary people decide to pay it forward? Extraordinary change...

Endeavor Global, cofounded by Linda Rottenberg (here at the nonprofit’s headquarters in New York), helps entrepreneurs in emerging markets.

Linda Rottenberg helps people pursue dreams – and create thousands of jobs

She's chief executive of Endeavor Global, a nonprofit group that gives a leg up to budding entrepreneurs.

 
 
Become a fan! Follow us! Google+ YouTube See our feeds!