Anthony Boadle – Reuters, 09/21/2012
Latin America’s two largest economies should be expanding rather than curbing trade flows, Mexico’s President-elect Enrique Pena Nieto said on Thursday in veiled criticism of a Brazilian restriction on Mexican car imports.
Brazil modified an auto pact with Mexico in March to slap a quota on surging imports of Mexican-made cars, a move that many saw as a return to protectionist policies of the past.
Mexico agreed to cut its auto sales to Brazil to about $1.55 billion a year between 2012 and 2014. Vehicles within quota can enter Brazil tax free; those above quota are subject to a 35 percent tax.