Mexico and Brazil resumed trade negotiations on ACE 53 and ACE 55, ruling out the possibility of reaching a free trade agreement.
On September 5, 2025, both nations resumed negotiations to expand and deepen Economic Complementation Agreements No. 53 and No. 55.
From that date through February 10, 2026, delegations from Mexico and Brazil held seven high-level virtual meetings. They also held technical meetings to analyze proposals. Importantly, they identified areas of common interest. Two objectives were set: to strengthen the bilateral trade relationship and to ensure the continuity of the negotiation process.
ACE 53 and ACE 55
Economic Complementation Agreement No. 55 (ACE 55) is a 2002 treaty under ALADI between Mexico and Mercosur (notably Brazil) that regulates and promotes tariff-free trade and productive integration in the automotive sector, including auto parts and heavy-duty vehicles.
In particular, trade in light vehicles between Mexico and Brazil was liberalized in 2019. Meanwhile, the tariff reduction for heavy vehicles was postponed from 2020 to 2023. A schedule for tariff reductions was negotiated as follows: 20% (2020–2021), 40% (2021–2022), 70% (2022–2023), and 100% (effective July 1, 2023).
For its part, the Economic Complementation Agreement No. 53 (ACE 53) is a 2002 bilateral treaty under ALADI between Mexico and Brazil. It grants fixed tariff preferences to promote trade in tariff subheadings within the agricultural and industrial sectors.
In 2021, the two nations had preferential tariffs on 3,380 product classifications (preferential lines). Of that total, 115 correspond to ACE 53, 93 to ACE 55, and 3,172 to Regional Agreement No. 4.
Mexico-Brazil Binational Commission
Mexico’s Ministry of Foreign Affairs (SRE) utilized bilateral consultation mechanisms to provide political impetus and follow up on priority economic issues.
In the bilateral context with Brazil, Mexico coordinated the Subcommittee on Economic, Trade, and Financial Affairs of the Binational Commission. In this forum, authorities from both countries followed up on key issues related to trade, investment, agriculture, and customs. They evaluated the update of ACE 53, ACE 55, and the Agreement on Cooperation and Facilitation of Investments. The results achieved were subsequently presented during the Sixth Mexico-Brazil Binational Commission, held in August 2026.
Meanwhile, in October 2025, the relevant institutions followed up on the Declaration of Intent on the Production and Use of Biofuels. Toward the end of that same month, President Claudia Sheinbaum and President Luiz Inácio Lula da Silva held talks focused on economic complementarity. They also discussed opportunities for strategic collaboration between the two nations.