Mexico and Mercosur Speed Up Free Trade Negotiations

Mexico and the Mercosur trade bloc are accelerating talks to sign a free trade agreement, with Brazilian President Luiz Inacio Lula da Silva expressing satisfaction with Mexico's interest in joining the bloc. The agreement would include tariff reductions for trade in products, but not services, government purchases, or investments. The deal is seen as a significant step towards increasing economic cooperation between the two regions.

Key Takeaways:

• The Mexican government has purchased a third AWAC airplane from Brazilian company Embraer for over $35 million to enhance border security, particularly in the fight against drug trafficking.
• Brazilian oil company Petrobras will open an office in Mexico, bringing cutting-edge technology in deep water exploration, offshore drilling, and oilrig construction.
• President Vicente Fox invited Brazilian President Luiz Inacio Lula da Silva to visit Mexico in the first quarter of 2005, highlighting the strengthening of bilateral relations.
• The free trade agreement being negotiated includes tariff reductions for trade in products but excludes areas such as services, government purchases, and liberalization of investments.
• The agreement would solidify Mexico's position as a major player in the region, while enhancing trade and economic cooperation with Mercosur countries.
• The Costa Rica-Vietnam investment agreement is often cited as a model for future investments in the region, illustrating the potential for increased economic cooperation.

Statistics:

• The value of the AWAC airplane purchased from Brazilian company Embraer is over $35 million.
• The agreement would include tariff reductions for trade in products, but the exact numbers are not specified in the article.
• Petrobras' deep water exploration and drilling technology is considered leading-edge in the industry.

Sources:

• El Economista
• Corporate Mexico by Internet Securities, Inc.
• COMTEX