Mexico Rejects Free Trade Agreement with Brazil, Argentina, and Paraguay

Strategic Insights -

The National Agricultural Council (CNA) has announced its rejection of negotiations for a free trade agreement (FTA) with Brazil, Argentina, and Paraguay. The council's vice president, Alfredo Moises Ceja, stated that Mexico's agriculture sector is sensitive and cannot compete with the export costs of these countries, which are major producers of dairy products, meats, coffee, wheat, soy, and barley.

Key Takeaways:

  • The CNA rejected negotiations for a free trade agreement (FTA) with Brazil, Argentina, and Paraguay due to concerns over Mexico's ability to compete with these countries' export costs.
  • Mexico's agriculture sector is sensitive and relies heavily on exports, making it difficult for the country to negotiate a FTA that would allow for free trade with these nations.
  • The CNA's objection to forming a FTA with these countries is in line with Mexico's requirements as an associate member of Mercosur, which includes establishing a FTA with the bloc that would free trade for at least 90% of goods traded between the areas.
  • Members of the CNA plan to meet with Secretary of Economy Fernando Canales Clariond to express their objection to forming a FTA with these nations.
  • The rejection of the FTA is a setback for Mexico's economic diplomacy efforts, particularly in the context of its Mercosur membership.
  • The CNA's vice president, Alfredo Moises Ceja, emphasized the importance of protecting Mexico's agriculture sector, which is a significant contributor to the country's economy.

Statistics:

  • 90%: The percentage of goods traded between Mexico and the Mercosur bloc that would be subject to free trade under a FTA.
  • Mexico's agriculture sector is estimated to contribute around 4.5% to the country's GDP.

Sources:

  • "Mexico Boom" (El Economista/Corporate Mexico by Internet Securities, Inc.)
  • "COMTEX" (http://www.comtexnews.com)