Trade Agreements and Health Negotiations between Mexico and Brazil
The government of Brazil described its recent visit to Mexico as successful, highlighting that the Mexican Program Against Inflation and Scarcity (PACIC) will facilitate a stable flow of Brazilian exports of beef and pork, as well as beef and pork meal. However, the South American delegation did not achieve its main objective: for Mexico to declare it a country free of foot and mouth disease, a viral disease that affects cloven-hoofed animals.
In reciprocity, Brazil will allow the entry of Mexican tuna and avocado to its domestic market, as confirmed by representatives of the national agricultural sector. This exchange is part of an effort to balance the trade balance and diversify the products exchanged.
Unwavering Posture on Health Matters
During the Global Agri-Food Forum organized by the National Agricultural Council, the Mexican Secretary of Agriculture and Rural Development, Julio Berdegué Sacristán, was categorical. He clarified that, although there is interest in deepening commercial exchange, Mexico will not modify its health protocols. “We are always interested in safe trade,” he said, underlining the priority of protecting the national health status and the health of consumers.
As part of the rigorous procedures, Mexican inspectors will be sent to audit meat plants in Brazil during the month of September. The objective of these audits is to verify compliance with Mexican and international standards, which will allow the renewal and granting of new export permits. According to Juan Hinojosa, senior vice president of Stonex Financial, fourteen meatpacking plants will be evaluated.
Strategic Implications and Concerns of the Local Sector
The trade opening towards Brazil, within the framework of the PACIC, has already had a quantifiable impact. An analysis by the Agricultural Market Consulting Group (GCMA) reveals that Brazilian participation in the Mexican beef market climbed from 2% in 2023 to a significant 34% last July, positioning it as the second most important supplier, only behind the United States. In the pork sector, Brazil maintains approximately 2% of the national market.
This growth consolidates Brazil in a dual role: as a strategic partner to ensure supply and contain inflation, and as a strong competitor for national producers. Its productive capacity is enormous: it is the world’s second producer and first exporter of beef, the fourth producer and third exporter of pork, and the third producer and first exporter of chicken.
This situation generates concern in the local livestock industry. Álvaro Bustillos Fuentes, president of the Regional Livestock Union of Chihuahua, expressed a firm position: “We must close the door to Brazil… it is better that there are support programs for infrastructure and industrialization here.” His statement reflects widespread concern about external competition and the desire to strengthen self-sufficiency and the internal value chain.
The future of this trade relationship will be discussed in the review process of the Economic Complementation Agreement (ACE 53), a dialogue that, according to Berdegué, will extend until October 2026. It is crucial to note that the PACIC is not a permanent or generalized instrument, and there is no interest in a bilateral free trade agreement with Brazil at this time.
There is also speculation in the sector about a re-export strategy. Given the proximity and access to the US market, the possibility of Brazil using Mexico as a platform to subsequently send its meat products to the United States is being analyzed, which adds another layer of geopolitical complexity to these agreements.
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