Economic Complementarity Agreement between Mexico and Brazil (GOODS)

Note on the meeting of 28 JUNE 2021

Chairman: H.E. Dr. Muhammad Mujtaba Piracha (Pakistan)

1.  The 14^th Dedicated Session on Regional Trade Agreements (RTAs) of the Committee on Trade and Development (CTD) was convened in document WTO/AIR/COMTD/RTA/9/Rev.1 of 18 June 2021. Under item D (II) of the agenda, the Committee considered the Economic Complementarity Agreement between Mexico and Brazil (Goods) (WT/COMTD/RTA7/N/1, WT/COMTD/RTA7/1/Rev.1). This agreement was concluded in the context of the Latin American Integration Association (LAIA) as Economic Complementarity Agreement (ACE) number 53 (ACE No. 53). The present document contains the minutes relating to the consideration of this agreement.^[1]

2.  The Chairman said that the Economic Complementarity Agreement between Mexico and Brazil was notified under paragraph 4(a) of the Enabling Clause by Mexico on 23 July 2019 in document WT/COMTD/RTA7/N/1. The factual presentation on the agreement – document WT/COMTD/RTA7/1/Rev.1 dated 29 April 2021 – had been prepared by the Secretariat on its own responsibility, and in full consultation with the parties. The revision to the factual presentation corrected some typing errors in the original document that were found during the translation process. No written questions were received on the agreement before the present meeting.

3.  The representative of Mexico expressed appreciation to the Secretariat for having prepared the factual presentation on the agreement, and to the delegation of Brazil for the coordination between the parties and the joint efforts. The agreement sought to establish rules and disciplines for economic and trade relations between the two countries, which would enable the development and diversification of trade flows to enhance economic complementarity. This legal instrument provided economic agents with certainty and security in their trade operations through its provisions, which provided clear and predictable rules for economic development, and for the effective granting of the negotiated preferences and the implementation of the commitments adopted by the two countries. The agreement was reciprocal and also contained provisions in other areas, such as technical standards and sanitary and phytosanitary (SPS) measures. In 2020, Brazil was Mexico's ninth largest trading partner. Brazil was Mexico's eighth largest destination for exports and tenth largest source of imports at the global level. At the regional level, Brazil was Mexico's main trading partner in Latin America in 2020. Mexico's exports to Brazil in 2020 amounted to USD 3 billion and imports to USD 5.6 billion, with total trade reaching USD 8.7 billion. However, up until the pandemic, in 2018 and 2019, total trade had shown slight and steady growth and had reached around USD 10 billion. Total trade in the goods covered by the agreement had also increased gradually since the entry into force in 2003. It could be inferred from this that economic operators had learned to take advantage of the opportunities provided by the agreement, including in the context of manufacturing, and mainly automotive products. The agreement had given the parties a platform and a point of reference for identifying the new needs and challenges faced by their markets and economic operators. The parties would therefore continue their bilateral dialogue to discuss the best way to address these concerns. In closing, he expressed willingness to expand on any particular points of interest.