Mexico and Brazil to Create Free Trade Zone for Light Vehicles, an Industrial Info Market Brief

On March 19, Mexico said it had agreed to create a free trade zone with Brazil for light vehicles, which had been subjected to a regional content requirement of 40%. The deal paves the way for more flexible trading between Latin America's two largest economies. Mexico has long been exploring options to diversify its trading partners, after U.S. President Donald Trump cautioned about a possible conclusion of the North American Free Trade Agreement (NAFTA) last year.

Industrial Info is tracking more than 90 capital automotive projects in Brazil and Mexico worth $11.47 billion.