Brazil and Mexico reportedly held regular talks to boost their trade relations as they seek to expand partnerships beyond the U.S. and China.
According to a report by The Financial Times, Sheinbaum said that she and Brazil’s President Luiz Inácio Lula da Silva met on at least four different occasions. She added that Brazil’s Trade Secretary was scheduled to travel to Mexico City in August to discuss trade partnerships in more detail.
The two presidents have publicly expressed their objective to increase economic ties with developing economies. However, the countries were reportedly cautious not to upset the U.S. or China, which was Brazil’s biggest trade partner and buyer of its goods.
One person involved in the talks reportedly said there was a lot of enthusiasm and will from both countries, adding that there was a strong political, programmatic, and ideological affinity to engage in dialogue at all levels. The two countries already had a trade agreement that lowered or exempted import fees on nearly 800 product categories since the early 2000s.
Brazil’s president says building stronger global trade ties starts in Latin America
Sheinbaum said Mexico would supply Brazil with what it did not have, and Brazil could supply what Mexico did not have, including setting up investments between the two countries.
For Mexico, Brazil could offer investment opportunities in aerospace and pharmaceuticals, while easing dependence on the U.S. for imports of grains like yellow corn. Brazilian officials also said the country’s agribusiness and industrial sectors aimed to increase exports to Mexico.
Additionally, Lula has long pushed for closer Latin American integrations because they would improve the region’s insufficient trade and infrastructure links, which were key to ensuring increased economic success. Media reports claimed that only 14% of Latin America’s trade occurred within the region, a lower proportion than any other place in the world.
Official numbers from Brazil reportedly showed that bilateral trade between the country, which recorded a $2 billion surplus, and Mexico totaled only $13.6 billion in 2024.
The amount was reportedly a small fraction of the $840 billion of goods traded between the U.S. and Mexico in 2024, and the $161.8 billion exchanged between Brazil and China in 2024.
Brazilian diplomat calls it ‘a risk reduction policy’
5/ Brazil is playing the long game—no retaliation, just deeper ties with China and a push to finalize its FTA with the EU. Expect more Chinese infrastructure investments as Brazil positions itself as a key Pacific-Atlantic trade corridor.
— GTIPA (@GTIPAlliance) June 30, 2025
A senior Brazilian diplomat who requested anonymity said in April that the relationship with the U.S. was highly risky due to Trump’s tariffs. Brazil, therefore, adopted a “risk reduction policy,” which meant looking for alternatives. Mexico also disclosed that it was gearing up to renegotiate its USMCA deal with Canada and the United States.
The Mexico-Brazil Chamber of Commerce (CAMEBRA) also disclosed working with the Mexico City Tourism Secretariat, the Mexican Consulate in São Paulo, OXXO, and FEMSA to strengthen Mexico’s presence in Brazil and open more opportunities for Mexican products through this crucial chain.
“Brazil is also looking to close a regional trade deal with the European Union and boost cooperation among the BRICS group of major developing nations.” – Anonymous Brazilian diplomat
In January, U.S. Senator Marco Rubio (R-FL) also said Brazil had signed a deal with China, which suggested bypassing the U.S. dollar to trade in their own currencies. He added that the two countries were creating a parallel system of the world economy, which would be completely independent of the American system.
However, one Brazilian official said Mexico and Brazil were yet to agree on either expanding their existing agreement to reduce tariff barriers or initiating more negotiations for a completely new trade deal.
