42 Brazilian Companies Eye Mexico for Investment Expansion

A wave of Brazilian investment is poised to reach Mexico, with 42 companies preparing to expand into the country despite lingering concerns over US trade policies, said the Brazil-Mexico Chamber of Commerce. These businesses are targeting a range of sectors, including cloud services, logistics, auto parts distribution, food, and data centers, and many of them have plans to establish operations in major industrial hubs such as Monterrey, Saltillo, Queretaro, Tijuana, Guadalajara, Juarez and Mexico City.

“We are working on 42 investment projects from Brazilian companies looking to open markets or build operations in Mexico,” said Liborio Rauber, President, Brazil-Mexico Chamber of Commerce (BRAMEXCAM). This, despite potential US tariffs, volatile markets and lack of a bilateral trade agreement. Rauber emphasized that for every Mexican company entering Brazil, 21 Brazilian firms are aiming to set up in Mexico, highlighting the country's growing appeal for international expansion.

Currently, 716 Brazilian companies operate in Mexico, compared to just 48 Mexican firms in Brazil, said Rauber.

Much of the investment interest is fueled by Mexico’s strategic position in the North American market, particularly under the USMCA treaty. This nearshoring trend is moving production closer to end markets and driving companies to establish manufacturing and distribution hubs in Mexico to avoid supply chain disruptions and potential US tariffs.

“Mexico offers Brazilian companies proximity to the United States and Canada, faster delivery times, lower logistics costs, and tariff-free access,” added Rauber.

Rauber pointed to successful expansions by Mexican firms into Brazil. Monterrey-based Grupo Lamosa recently invested US$680 million to acquire Brazilian ceramic bathroom fixture company Incepa. Bimbo, the Mexican baked goods giant, previously bought Brazil’s Pullman and Bauducco brands. While the company initially rebranded Pullman under the Bimbo name and lost market share, it later returned to the original branding. Bauducco products are now sold in Mexican convenience stores like OXXO, which has rapidly expanded in Brazil, opening 500 stores in the past two years.

Mexican conglomerate América Móvil, owned by billionaire Carlos Slim, also holds a substantial share of Brazil’s internet infrastructure through its subsidiary Claro, which carries nearly 20% of the country’s internet traffic, said Rauber. 

Despite the absence of a trade deal between the two nations, Rauber said the fundamentals remain strong for continued Brazilian interest in Mexico, citing the country’s solid industrial infrastructure, expanding consumer market, and stable macroeconomic environment.

“This level of interest is unprecedented,” Rauber said. “Even under WTO rules, without a formal agreement, the business opportunities here are too significant to ignore.”

Strengthening Bilateral Ties 

Mexican President Claudia Sheinbaum and Brazilian President Luiz Inácio Lula da Silva have agreed to reinforce bilateral relations in key strategic areas. Beyond trade, the two nations will collaborate in scientific research, education, the pharmaceutical industry, and ethanol production. According to Sheinbaum, the renewed partnership aims to complement each country’s economy through cooperation rather than pursuing a formal free trade agreement, reported MBN. 

A central focus of this initiative is the pharmaceutical sector. Brazil, which has a robust pharmaceutical industry and an established regulatory authority, will work with Mexico’s health regulator, COFEPRIS, to foster reciprocal investment and align regulatory standards within the sector.

Ethanol production represents another promising avenue for collaboration. Brazil’s experience and technological leadership in the ethanol industry could benefit Mexico’s sugar sector and its processing facilities, paving the way for technology transfer and industrial advancement.

In late August, a Brazilian delegation will meet with Mexican government officials and private-sector representatives to discuss potential trade agreements, coordinate policy efforts, and promote joint investments.