Mexico and Brazil Seek a New Trade Deal

Mexico and Brazil are once again struggling to overcome conflicting geopolitical imperatives in order to reach a trade deal. Negotiations between the two over an automotive sector agreement have been unsuccessful so far, though talks will continue into the second week of March. The existing agreement, which is set to expire March 18, has produced heated disagreement between leaders of Latin America's two largest economies and is symptomatic of the divergence between Mexico and Brazil's broader economic policies and prospects. Though the two countries will likely reach a compromise before the current deal lapses, the new agreement will probably fall short of the full free trade deal that Mexico is hoping for as Brazil continues to protect its domestic industries.