Automakers established in Brazil are asking the government to renegotiate the free trade agreement with Mexico regarding vehicles and auto parts and keep the quota regime for car exports and imports for three more years.

The deal states that free commerce between the two countries should start on March 19th. Buses and trucks are not included in the agreement.Last week, representatives from the car industry requested a meeting with Marcos Troyo, special secretary for Trade and International Affairs at the Ministry of Economy, headed by economist Paulo Guedes.

​The presented a study from PwC, stating that it's cheaper to make cars in Mexico than in Brazil. The Mexicans have an advantage because of taxes, infrastructure and scale -- they produce a lot more because of the export to the United States.

Automakers want to raise the export and import quotas for cars between Brazil and Mexico between 10 to 15% in the first year, and keeping increasing the allowance in the following two years, for then start free trade between the two countries.

Today, the limit is US$ 1.7 billion per year, shared among all companies. Some automakers are close to the limit of what they can import from Mexico, but far from reaching their export quota from Brazil to Mexico.  

Translated by NATASHA MADOV
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