During an official visit, President Lula participates in the opening of the Brazil-Mexico Business Forum

Brazil’s President of the Republic, Luiz Inácio Lula da Silva, spoke this Monday, September 30, at the opening of the Brazil-Mexico Business Forum. The meeting aims to promote commercial relations between the two countries. Lula is officially visiting the Mexican country’s capital city until Tuesday, October 1st.

The event runs parallel to the main agenda addressed by President Lula in Mexico, where he will participate in the inauguration of the country’s first woman-elected president, Claudia Sheinbaum. “I am very grateful for the friendly relationship with businesspeople, trade unionists, politicians, political parties, and social movements I made in Mexico. I am very grateful for that. It is an immense joy to be here,” stated Lula at the beginning of his speech.

>> Check out President Lula’s speech at the event

The meeting is also strategic for discussing the main agendas that will contribute to the economic development of both countries. The forum aims to identify opportunities for business, partnerships, and investments between the two largest economies in Latin America. The sessions are part of the meetings between Brazilian and Mexican entrepreneurs, promoted by the Brazilian Trade and Investment Promotion Agency (Agência Brasileira de Promoção de Exportações e Investimentos / ApexBrasil) to foster larger commercial and investment exchanges between the two countries.

GDP — Brazil and Mexico are Latin America's largest populations and economies, representing around 65% of the Latin American GDP. Lula presented an assessment of the Brazilian economy, noting that, contrary to speculation, this year may see an economic growth of 3.5%. “Given the reality of the world economy today, it is a very virtuous growth, and it is the result of a lot of work,” he declared.

AGREEMENTS — The president also highlighted the importance of the commercial partnership between Mexico and Brazil, underscoring the need to rediscuss agreements. “The Mexican and the Brazilian economies have extraordinary potential. I think we have not been able to use 70% of the potential we have yet. And this is why we must establish new agreements. Discuss in depth without fearing discussion. Always bearing in mind that a good trade policy is a two-way street,” stated Lula, emphasizing the potential of the economy of both countries[1] .

BALANCE — Lula mentioned the need to maintain balance in the Brazil-Mexico trade relations. According to the Brazilian president, maintaining a permanent dialogue with the entrepreneurs is also key. “There needs to be a well-balanced trade policy relationship. Because nobody can stand deficit all their life. We need balance. And this is how we have to work. And this is why I make a point of talking to businesspeople. Because I need to bring back civility to Brazil's political relationship”.

PROMOTING GROWTH ― The Brazilian leader emphasized the desire to promote economic growth on multiple fronts, highlighting the technological field, particularly the development of artificial intelligence. “I want to do business, I want economic growth, I want our industries to grow, I want our agriculture to grow, I want us to invest, Brazil and Mexico, in building artificial intelligence that can result in economic benefits for us, for our women, for our children, for our future. This is in our hands. We are smart enough for that,” he said.

SECTORS ― The meeting gathered companies such as Natura, Marcopolo, Bimbo, Nestlé, Femsa, Inbev, and Oxxo, as well as representatives from agribusiness and livestock and the automotive sectors, who reported on their activities in both countries. The Mexican and international groups operating in Brazil who attended the meeting spoke about their satisfaction with the growth of the Brazilian market. They also stated the importance of overcoming barriers and promoting greater integration between the two largest Latin American markets, which are among the largest global markets for their products.

PROPOSALS — The event was promoted by the Brazilian Trade and Investment Promotion Agency (Agência Brasileira de Promoção de Exportações e Investimentos / ApexBrasil) in partnership with the Brazilian Ministry of Development, Industry, and Trade (Ministério do Desenvolvimento, Indústria e Comércio / MDIC) and the Ministry of Foreign Affairs (Ministério das Relações Exteriores / MRE). During the ceremony, President Lula received proposals and recommendations from the Brazil-Mexico Business Council (Conselho Empresarial Brasil-Mexico / Cebramex). The Declaration presents both countries’ private sectors’ priorities to improve the business environment.

An agreement was also celebrated among ApexBrasil, Brazil’s National Industrial Confederation (Confederação Nacional das Indústrias (CNI), and COMCET. The memorandum aims to promote cooperation to strengthen commercial relations between Brazil and Mexico and establish the foundations for the organization of trade missions. It also aims to promote trade, generating new business opportunities for both countries.

Another memorandum of agreement was signed between Embraer [Brazil’s Aeronautics Company] and the Mexican Federation of Aerospacial Industry to identify and promote opportunities in the aerospace sector.

AGREEMENTS — According to the Brazilian Ministry of Foreign Affairs, Brazil aims to intensify two Economic Complementation Agreements (Agreements on Economic Cooperation ACE 53 and ACE 55) between the two countries, which focus on automotive product trade. ACE 53 establishes the elimination or reduction of import tariffs for approximately 800 tariff headings through the concession of reciprocal preference margins between Brazil and Mexico. This instrument also stipulates that, in the case of Brazil, the importation of products listed in the agreement will not be subject to the additional freight tax on goods imported by sea (Adicional ao Frete para a Renovação da Marinha Mercante / AFRMM).

Through ACE 55, Brazil and Mexico established free trade for the commercial exchange of automobiles, light commercial vehicles, chassis with engines and cabs, trucks, agricultural tractors, harvesters, self-propelled agricultural and road machinery, and auto parts for these products.

RELATIONS — In 2023, Brazil exported USD 8.57 billion to Mexico and imported USD 5.54 billion, representing a surplus of USD 3.03 billion in favor of Brazil—the largest figure registered since 2006. The trade balance is diversified, predominating items with high added value. One example from last June was the sale of 20 aircraft from Embraer to the Mexican Aviation Company (Compañía Mexicana de Aviación). Mexican investments in Brazil exceeded USD 10 billion in 2023, representing around 1% of the foreign investment stock in the country. According to Brazil’s Banco Central, there are 149 companies with Mexican capital in Brazil, operating in segments such as telecommunications (América Móvil, which controls Claro, Net, and Embratel), steel (Grupo Simec), beverages (Coca-Cola FEMSA), retail (OXXO), and food (Bimbo and Lala groups).