Mexico wants more access to Brazil for its car exports; Brazil has a struggling local industry to protect

Mexico wants more access to Brazil for its car exports; Brazil has a struggling local industry to protect

After two days of negotiations, Mexico and Brazil still had not reached an agreement on an auto pact and will continue discussions in the second week of March, the Mexican government said.

The accord, signed in 2012, limits the export of vehicles from Mexico to Brazil, Reuters reported.

While sources have told Reuters that Brazil wants to extend the quota for three to five more years, Mexico wants to move forward with the free trade of vehicles when the pact expires on 19 March.

"From the Mexican side, the expectation, and what was agreed upon, is that we should return to free trade," Mexican Economy Minister Ildefonso Guajardo told the news agency.

"In any negotiation, everyone has to have the capacity to be flexible."

While Mexico seeks to capitalise on its booming auto industry, Brazil is trying to protect its struggling auto sector.