WT/COMTD/RTA7/M/1  
 
27 July 2021 
(21-5844) Page: 1/3 
Committee on Trade and Development  
Fourteenth Dedicated Session on Regional Trade  
Agreements    
 
 
ECONOMIC COMPLEMENTARITY AGREEMENT BETWEEN MEXICO AND BRAZIL  (GOODS)  
NOTE ON THE MEETING OF 2 8 JUNE 2021 
Chairman: H.E. Dr . Muhammad Mujtaba Piracha (Pakistan)  
1.  The 1 4th Dedicated Session on Regional Trade Agreements (RTAs) of the Committee on Trade  and 
Development (CTD) was convened in document WTO/AIR/COMTD/RTA/9/Rev.1 of 18 June 2021.  
Under item  D (II) of the agenda, the Committee considered the Economic Complementarit y 
Agreement between Mexico and Brazil  (Goods) (WT/COMTD/RTA7/N/1, WT/COMTD/RTA7/1/R ev.1). 
This agreement was concluded in the context of the Latin American Integration Association (LAIA)  
as Economic Complementarity Agreement (ACE) number 53 (ACE No. 53) . The present document 
contains the minutes relating to the consideration of this agreement.1  
2.  The Chairman  said that the Economic Complementarity Agreement between Mexico and Brazil 
was notified under paragraph 4(a) of the Enabling Clause by Mexico on 23  July 2019 in document 
WT/COMTD/RTA7/N/1. The factual presentation on th e agreement – document 
WT/COMTD/RTA7/1/Rev.1 dated 29 April 2021 – had been prepared by the Secretariat on its own 
responsibility, and in full consultation with the parties.  The revisi on to the factual presentation 
correct ed some typing errors in the original document that were found during the translation process. 
No written questions were received on th e agreement before t he present  meeting.  
3.  The representative of Mexico  expressed appreciation to the Secretariat for having prepared the 
factual presentation on the agreement, and to the delegation of Brazil  for the coordination between 
the parties and the joint efforts.  The agreement sought  to establish rules and disciplines  for economic 
and trade relations between the two countries, which would  enable the development and 
diversification of trade flows to enhance economic complementarity. This legal instrument provide d 
economic agents with certainty and security in their trad e operations through its provisions, which 
provide d clear and predictable rules for economic development, and for the effective granting of the 
negotiated preferences and the implementation of the commitments adopted by the two countries.  
The agreement was reciprocal and also contain ed provision s in other areas , such as technical 
standards and sanitary and phytosanitary (SPS) measures. In 2020, Brazil was Mexico's ninth largest 
trading partner . Brazil was Mexico's eighth largest destination for exports and tenth  largest source 
of imports at the global level. At the regional level, Brazil was Mexico's main trading partner in 
Latin America  in 2020 . Mexico's exports to Brazil in 2020 amounted to US D 3 billion and imports t o 
USD 5.6 billion, with total trade rea ching US D 8.7 billion. However, up until the pandemic, in 2018 
and 2019, total trade had shown slight and steady growth and had reached around US D 10 billion. 
Total trade in the goods covered by the agreement ha d also increased gradually since the entry into 
force in 2003. It could be inferred from this that economic operators ha d learned to take advantage 
of the opportunities provided  by the agreement, includ ing in the context of  manufacturing , and 
mainly automot ive products. The agreement had given the parties a platform and a point of reference 
for identifying the new needs and challenges faced by their markets and economic operators. The 
parties would therefore continue their bilateral dialogue to discuss the b est way to address these 
concerns. In closing, he expressed willingness to expand on any particular points of interest.   
 
1 The general minutes of the CTD's 1 4th Dedicated Session on RTAs are contained in document 
WT/COMTD/RTA/M/1 4. WT/COMTD/RTA7/M/1  
 
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  4.  The representative of Brazil  thanked the Secretariat for having prepared the factual presentation , 
and also thanked the delegation of M exico for its support throughout the process. He said that Brazil 
was pleased to take part in this transparency exercise. Brazil and Mexico were the largest economies 
in Latin America, and the largest traders in the region. Mexico was one of Brazil 's main trading 
partners, ranking as the seventh largest export market and supplier of imports. Brazil and Mexico 
enjoy ed positive and fruitful economic relations in various fields, as indicated by trade flows – which 
ranged from USD 9 to 10  billion a year  – relevant investment between both countries, a 
bilateral  Investment Facilitation Cooperation Agreement signed in 2015 , and the establishment in 
2019 of the Brazil -Mexico Business Council, which aim ed to strengthen relations between both 
countries ' private  sectors. Brazil remain ed committed to working with Mexico to enhance economic 
ties. He went on to say that ACE No. 53  was signed in 2002, within the LAIA framework, and entered 
into force in 2003. It comprise d 18 chapters and 2 annexes, as well as 3 addit ional protocols on  
Dispute Settlement Mechanism ; Certificate of Origin for products under tariff -rate quotas ; and 
increased margin of preference granted by Brazil to one tariff line. Tariff preferences were granted 
on around 800 tariff lines, concentrated mostly in the chemical sector. The agreement had been 
playing an important role in supporting the growth of bilateral trade flows. Since 2003, 
Brazil 's imports from , and exports to , Mexico ha d been growing above the growth rate of the 
country 's total inter national trade. Bilateral trade flows reached US D 9.05 billion – or 2.2% of Brazil 's 
foreign trade  – in 2019 , but suffered a reduction in 2020, due to the COVID -19 crisis. However, 
trade flows were recovering strongly, having grown at 21.2% from January to May 2021 compared 
to the same period the previous year. Brazil 's exports to Mexico were concentrated on manu factured 
goods , which correspond ed to 94 .6% of total exports. The main products were industrial 
intermediate goods and transport components and equipment. Also important were the exports of 
frozen chicken meat. Similarly, Mexico 's exports to Brazil were concentrated in machinery, chemicals 
and vehicles.  
5.  Brazil believe d that there was still space to grow trade relations, in line with the dimension s of 
both countries ' economies. Opportunities for expansion could  be found in the diversification of 
bilateral tr ade flows, to encompass a broader variety of goods. Since 2015, Mexico and Brazil ha d 
been discussing a substantial expansion of ACE No.  53 to include new tariff lines and commitments 
in all areas  that ma de a modern trade agreement. This would represent a unique opportunity to 
deepen and consolidate trade relations between the two countries, and would  contribute towards 
the integration of Latin America 's economies. From Brazil 's perspective, a new and more ambitious 
version of the agreement could focus on sectors that were not adequately contemplated by 
ACE No. 53, such as other industrialized goods beyond the automotive and chemical sectors, as well 
as agricultural and food pro ducts. Brazil remain ed fully committed to exploring ways of deepening 
its trade relations with Mexico, especially through ACE  No. 53. He said that ACE No. 53 also include d 
provisions on economic cooperation, exchange of information relevant to the bilatera l trade relations 
and technical cooperation. Under the agreement, Brazil and Mexico additionally  aimed to cooperat e 
on trade promotion activities, such as the organization of business missions and trade exhibitions, 
in order to foster the use by the privat e sector of the trade preferences. The p arties had also agree d 
to facilitate the adoption of measures that may further  the coordination and complementarity 
between both countries ' industrial sectors, in order to advance joint investment in various economic  
activities. Moreover, ACE  No. 53 include d some provisions on technical and SPS standards, according 
to which Brazil and Mexico agree d to cooperate, exchange information and provide assistance 
regarding technical norms, conformity assessment and recognitio n of equivalency of SPS measures, 
among others.  
6.  The representative of the United States  thanked Mexico and Brazil for participating in the 
transparency exercise.  
7.  The representative of the European Union  expressed her delegation 's appreciation to the parties 
for the transparency provided.  
8.  The Chairman  said that oral discussion of the Economic Complementarity Agreement between 
Mexico and Brazil  could be concluded in accordance with paragraph 11 of the Transparency 
Mechanism for RT As (RTA TM). Follow -up questions by Members would need to be submitted in 
writing to the Secretariat within one week, by 5 July 2021. The parties would then be given 
two weeks to submit written replies, by no later than 19 July 2021. In accordance with par agraph  13 
of the RTA TM, all written submissions as well as the minutes of the present meeting would be 
circulated promptly in all WTO official languages, and would be made available on the WTO  website.  WT/COMTD/RTA7/M/1  
 
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  9.  The Committee took note  of all interventions .  
 
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