Mexico defeats Brazil in duel of exports

Mexican external sales increased 55% in the last decade, an increase that doubles the advance of 21.2% of the Brazilian companies.

Mexico defeats Brazil in duel of exports

Mexico has increased its exports at a rate that is more than double that of Brazil in the last decade, both being the largest exporters in Latin America.

Mexican exports of products totaled 451,000 million dollars in 2018, an increase of 55% compared to 2008, according to Inegi data.

On the other hand, the external sales of Brazil were of 240,000 million dollars in the past year, what represents an accumulated increase of 21.2% in the last decade, according to data of the Ministry of Development, Industry and Foreign Trade of that country .

Mexican external sales were led by cars, auto parts, vehicles for the transport of goods, computers and crude oil oils.

In contrast, the main Brazilian exports included soybeans, crude petroleum oils, iron ores and concentrates, wood pulps to soda or sulphate, and cakes and other solid residues from the extraction of soybean oil.

The general orientation of Brazil’s trade and trade-related policy has not changed in recent years. Its objectives have been to integrate into global value chains and increase the competitiveness of national products.

Despite some adjustments, due, among other factors, to the recent economic slowdown, its long-standing programs aimed at fostering technological development, protecting certain domestic producers from external competition, attracting investments and promoting and diversifying exports did not change. practically.

A recent analysis disseminated by the Getulio Vargas Foundation and the School of Economics of São Paulo on Brazilian trade policy analyzed the liberalization process that took place in Mexico.

This opening began in the 1980s and had as its main episode the ratification of the North American Free Trade Agreement with the United States and Canada.

“The Mexican trade liberalization can be considered a success, promoting the increase of exports, economic growth and the welfare of the population. However, inequality in the country probably increased as a consequence of the process (although all layers of society could benefit). This is an important aspect that must be taken into account by the policy makers in Brazil, “the document states.

As a member of Mercosur, Brazil maintains preferential trade agreements (economic complementation agreements) with Bolivia, Chile, Colombia, Cuba, Ecuador, India, Mexico, Peru, the Southern African Customs Union and Venezuela, as well as a free trade agreement with Israel.

For its part, Mexico has signed 13 free trade agreements with 52 countries and seven partial scope agreements within the framework of the Latin American Integration Association.

Source: El Economista

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