Brazil may increase auto trade quota for Mexico
After booming sales of Mexican cars in Brazil, the Brazilian government is considering raising the auto trade pact quota it agreed to with Mexico.
Brazil is considering raising a three-year bilateral auto trade pact quota it agreed to with Mexico in March, potentially allowing Mexican exporters to sell around $350 million worth of additional vehicles to the Brazilian market annually.Skip to next paragraph
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A Mexican government source familiar with the matter and a Brazilian official said the two sides had raised the possibility of increasing the quota after booming sales of Mexican cars to Brazil this year.
After breaching the limit, Mexican exporters must pay tariffs that significantly increase the cost of sales.
"We understand that they're interested in raising the quota, even though there still hasn't been any official contact," said the Mexican government official. "Our understanding is that they want to raise it to the tune of around $350 million."
The Brazilian official told Reuters that Brasilia was eyeing lifting the quota by between $300 million and $500 million.