Brazil, Argentina seek trade links to Mexico
• The leaders of Brazil and Argentina said on Tuesday they would pursue closer ties with Mexico and other Latin American nations alarmed by U. S. President Donald Trump’s promises to tear apart trade deals and build a wall to protect American jobs.
In a state visit to Brasilia, Argentina President Mauricio Macri said that South American regional trade bloc Mercosur would focus on strengthening its relationship with Mexico, Latin America’s second- l argest economy after Brazil.
In his campaign to keep manufacturing jobs in the United States, Trump has also threatened to slap higher taxes on U. S. companies opening new plants abroad and promised to rework the North American Free Trade Agreement with Canada and Mexico.
Tensions are r unning particularly high with Mexico after Trump ordered the construction of a wall along its 3,200- kilometre border with the United States to stop illegal immigration.
Those moves were hailed by Macri, who came to power in 2015 on a business-friendly program, and his Brazilian counterpart Michel Temer as an opportunity to deepen trade ties within Latin America, long overshadowed by Washington’s economic might.
“This change in scenario will make Mexico turn to the South with more conviction,” Macri said.
Macri said he spoke with Mexican President Enrique Pena Nieto on Monday to discuss deepening cooperation between Mexico and Mercosur and wished him good luck in his dealings with the United States.
Both Macri and Temer are seeking to open their countries, which have for decades been considered among t he most cl osed economies in the Western Hemisphere, in an effort to revive activity after years of recession.
Some local trade experts say a potential rift between the United States and Mexico could open up space for Latin American nations.
“Mexico r epresents a great opportunity for Brazil and the region,” said Welber Barral, the former i nternational trade secretary for Brazil from 2007 to 2011. “Mexico is a huge importer of agricultural products and its car industry could complement that of Brazil.”