A dispute over trade in cars exposes contrasting attitudes to globalisation in Latin America’s biggest economies

Brazil, Mexico and trade
Two ways to make a car
Mar 10th 2012 | MEXICO CITY AND SÃO PAULO



OFFICIALS from Brazil and Mexico are arguing over the future of a 2002 agreement that allows free trade in cars between them. For a decade it worked as it was meant to, and to Brazil’s advantage, by encouraging carmakers in Mexico to specialise in larger models and those in Brazil to make smaller ones. But last year Mexican exports under the accord grew by 40% to $2 billion, while Brazil exported cars worth just $372m. Brazil has cried foul. This apparently petty dispute says much about how Latin America’s two biggest economies think about trade and industry.

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