Mexico, Brazil Forge Stronger Partnership

Mexico and Brazil, the two largest economies in Latin America, have shared a rich diplomatic and economic history that continues to evolve into a strategic partnership for the 21st century. This relationship is anchored in 122 bilateral agreements and reinforced by the ongoing dialogue between the two countries’ embassies and authorities in their respective capitals.

The first diplomatic exchanges between Mexico and Brazil date back to Aug. 7, 1824, when both nations, through their representations in the United Kingdom, recognized each other as independent states. Formal diplomatic relations were established on March 9, 1825. 

Brazil and Mexico have the two largest populations and economies in Latin America, representing about 65% of the region’s GDP. According to COMEXI, Mexico and Brazil together account for 66% of the region’s foreign direct investment (FDI), 52% of its population, and 54% of its territory.

Bilateral economic relations are framed by Economic Complementation Agreements (ACE) 53 and 55, the latter focused on the automotive sector. In 2019, a protocol established duty-free trade for heavy vehicles, marking a step forward in trade integration despite the absence of a comprehensive free trade agreement.

Trade and Investment Dynamics

Brazil is Mexico’s top trading partner in Latin America, serving as the primary destination for Mexican exports and its leading supplier in the region. The reciprocal investments exceed US$30 billion on each side, reflecting their strategic economic interdependence.

Key trade data from the Ministry of Economy for 2024 highlights this synergy:

• Mexico’s top export to Brazil: Motor vehicle parts and accessories (US$809 million)

• Brazil’s top export to Mexico: Intermediate iron or non-alloy steel products (US$2.11 billion)

• Main Mexican export hubs: Mexico City, Nuevo Leon, and State of Mexico

• Main Brazilian export destinations in Mexico: Nuevo Leon, Mexico City, and Jalisco

Still, bilateral trade remains highly concentrated. According to BRAMEXCAM, 10 Brazilian products, including steel, soybeans, poultry, pork, and iron ore, make up 47% of exports to Mexico.

According to Forbes, 42 Brazilian firms are preparing projects in manufacturing, data centers, logistics, and automotive across cities like Monterrey, Queretaro, Guadalajara, Tijuana, Ciudad Juarez, and Mexico City. By contrast, only two Mexican companies are planning new investments in Brazil, reflecting an asymmetric investment flow.

Prominent cases of Mexican investment in Brazil include Grupo Lamosa’s 2023 acquisition of Incep for US$680 million, Nemak’s operations in Manaus and São Paulo, and América Móvil’s subsidiary Claro. Claro now controls 20% of Brazil’s internet market and is deploying 66,576km of fiber-optic networks to boost national connectivity

Likewise, according to Brazil’s Central Bank, there are 149 Mexican-owned companies in Brazil, operating in sectors such as telecommunications (América Móvil, which controls Claro, Net, and Embratel), steel (Grupo Simec), beverages (Coca-Cola FEMSA), retail (OXXO), and food (Grupo Bimbo and Gru´p Lala). While in Mexico, 716 Brazilian companies are established.

Agricultural and Health Cooperation

In July 2025, the Ministry of Agriculture and Rural Development (SADER) and Brazil’s MAPA strengthened agri-food trade relations. Mexico seeks to expand exports of avocado, fresh peach, asparagus, tomato, and potato, while Brazil is interested in exporting apples, coffee, and popcorn, alongside promoting the recognition of its FMD-free and avian influenza regionalization status.

SENASICA’s chief, Francisco Calderón, highlights that agri-food trade is at its peak, driven by trust and compliance with strict sanitary standards.

A New Phase of Strategic Cooperation

Recent high-level meetings between Mexican President Claudia Sheinbaum Pardo and Brazilian President Lula da Silva signal the beginning of a renewed partnership. Areas of collaboration include:

• Pharmaceutical industry: Regulatory alignment between COFEPRIS and ANVISA to encourage reciprocal investment

• Ethanol production: Leveraging Brazil’s expertise to support Mexico’s sugar industry and biofuel initiatives

• Scientific research, education, and technology transfer

Brazilian Vice President Geraldo Alckmin is set to lead a high-level delegation to Mexico in late August 2025 to formalize new commercial agreements and foster joint investments.

Brazil’s Economic Outlook

Brazil, with a population of 212 million and GDP of US$2.18 trillion, remains a regional industrial leader. Its industrial sector grew 3.1% in 2024, the third-highest increase in 15 years, according to IBGE’s Monthly Industrial Survey. Growth was widespread, with 20 of 25 sectors, 60 of 80 groups, and 63.1% of 789 products showing positive results. Key drivers were motor vehicles (which grew 12.5%), electronics (14.7%), electrical equipment (12.2%), chemicals (3.3%), and food products (1.5%).

In terms of GDP composition in 2024, services remained dominant at 45.9%, followed by industry (24.7%), commercial services (12%), financial services (7.2%), agriculture (6.5%), and transportation and storage (3.6%).

According to BBVA, while Brazil is expected to grow moderately to 2.2% in 2025 and 1.6% in 2026, stable inflation and a stronger real could support continued bilateral trade.