Mexico rules out a free trade agreement with Brazil

Mexican President Claudia Sheinbaum ruled out signing a free trade agreement with Brazil on Thursday, amid pressure on Latin America's two largest economies over US President Donald Trump 's trade policies.

The two countries signed cooperation agreements in areas such as biofuels and competitiveness during Vice President Geraldo Alckmin 's visit to Mexico, but Sheinbaum said a broader treaty is not in the cards.

“We are not thinking about a free trade agreement (…), but rather a collaboration agreement” , Sheinbaum said in response to a reporter's question at his regular press conference, hours before receiving Alckmin at the government palace.

Brazil faces 50% tariffs from the United States, while Mexico is negotiating a long-term agreement with Washington to avoid the imposition of customs duties.

During a phone call with Sheinbaum at the end of July, President Luiz Inácio Lula da Silva highlighted the importance of “deepening” the trade relationship with Mexico to face the “moment of uncertainty” due to customs tariffs.

Since then, Brasília has sought to expand the existing cooperation agreement with Mexico and expand the flow of goods between the two nations, focusing on sectors such as pharmaceuticals, agriculture, and aerospace, Lula said when sharing the results of this conversation on the social network X.

Mexican Economy Secretary Marcelo Ebrard announced Thursday that both governments have signed a memorandum of understanding "to begin cooperation tasks" that will also allow Mexico to increase its automotive exports to Brazil.

Likewise, a pact was proposed between the health regulatory agencies of both countries to speed up the approval of new drugs and collaboration in deep-water oil exploration, where Brazil has "vast experience," Ebrard highlighted.

"Brazil produces and has technology in certain areas that are of interest to Mexico, and we also have development in certain areas that are of interest" to the South American country, Sheinbaum summarized.