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Mexico to restrict vehicle exports to Brazil under temporary three-year agreement

Friday, March 16, 2012

Mexico agreed to quotas on its vehicle sales to Brazil over the next three years, a move that will reverse a surge in Mexican auto exports to Latin America’s largest economy.

Mexican car exports will be capped at $1.45 billion over the year starting March 19 and will be allowed to rise to $1.64 billion by the third year of the agreement, Mexican Economy Minister Bruno Ferrari said yesterday during an event in Mexico City. All limits will be removed after the third year, he said.

We achieved an agreement that is incremental, and an agreement that is temporary,” Ferrari said. “In other words, I think it’s something very beneficial for the industry.”

Source: Bloomberg