Brazil unlikely to give way in talks with Mexico to save trade deal in automobiles
Brazil and Mexico resumed talks to save a decade-old auto trade deal on Wednesday, but a Brazilian official said that Latin America's top economy was unlikely to back down from its demands.
Brazil is threatening to pull out of the trade deal, signed in 2002, after Mexican exports jumped almost 70 percent in 2011. Mexican-made cars are contributing to a glut of imports to Brazil that is worrying Brazilian manufacturers who are battling a strong local currency.
Brazil wants Mexico to slash its auto exports to Brazil by more than a third to about $1.4 billion a year. Mexico rejected that demand, saying it was willing to limit exports for several years at 2011 levels.