World Bulletin / News Desk
Brazil is considering raising a three-year bilateral auto trade pact quota it agreed to with Mexico in March, potentially allowing Mexican exporters to sell around $350 million worth of additional vehicles to the Brazilian market annually.
A Mexican government source familiar with the matter and a Brazilian official said the two sides had raised the possibility of increasing the quota after booming sales of Mexican cars to Brazil this year.
Companies in Brazil that import and sell cars are pressuring the Brazilian government over the trade quota, which was used up in the first six months of the modified pact, which took effect in March.
After breaching the limit, Mexican exporters must pay tariffs that significantly increase the cost of sales.
"We understand that they're interested in raising the quota, even though there still hasn't been any official contact," said the Mexican government official. "Our understanding is that they want to raise it to the tune of around $350 million."
The Brazilian official told Reuters that Brasilia was eyeing lifting the quota by between $300 million and $500 million.
Brazil drew an angry response from some in Mexico when it decided to change the terms of an existing auto pact to protect itself from surging vehicle imports from Mexico.
In the end, Mexico agreed to cut auto sales to Brazil to an average of about $1.55 billion a year between 2012 and 2014.
Brazil made the move after the value of Mexican car exports jumped around 70 percent in 2011 to $2.4 billion, aggravating a glut of cheaper imports that hurt Brazilian manufacturers.
Argentina afterwards tried to follow suit, though Mexico rejected the efforts by Brazil's smaller neighbor.
Asked on Wednesday if Brazil planned to raise the quota, a separate Brazilian government official said no talks were underway. Any possible talks would take place after incoming president Enrique Pena Nieto takes office in December, the official added.
Pena Nieto is currently visiting Brazil and is due to meet President Dilma Rousseff on Thursday.
Mexican exports to Brazil rose by 135 percent to some 109,000 units in the first six months of 2012. In dollar terms, this was a rise of around 112 percent to nearly $1.6 billion.
Austrian Chancellor Werner Faymann justified the original sanctions as "a self-defence step", but added: "Our goal cannot be tightening the sanctions."
Both the European Union and United States adopted tighter restrictions on investments in Crimea this week, targeting individuals, Russian Black Sea oil and gas exploration and tourism.
Chinese Premier Li Keqiang said the offer included $1 billion for infrastructure, $490 million for poverty alleviation and $1.6 billion in special loans for China's production capacity export
Ukraine could default on its debt obligations if the situation does not change in the next few months, S&P said on Friday.
Damascus has relied on Tehran to fight its war with drop in oil price affects oil-producing Iran. Syrian traders say Damascus worried about future support
The ruble makes small gain Friday morning, but RTS index continues to contract
Norwegian energy company Statoil, which suspended 5 rigs in the last 2 months, granted $610 million for development of its gas fields
Putin earlier announced pipeline project via Bulgaria would be cancelled.
President Vladimir Putin said that Russia needed to take the opportunity to diversify its economy to protect it from external shocks.
Verdi said in a statement that workers at four of those centres had decided to continue their strike until Saturday and employees at the Graben warehouse would strike until Dec. 24.
Russia suffers as sanctions bite economy; will crisis make Ukraine conflict too costly?
EU to tighten sanctions on Crimea in time for leaders summit to send message to Russia
The Organization of the Petroleum Exporting Countries declined to cut production at a Nov. 27 meeting and, despite slumping prices, major Gulf OPEC members have since shown no sign of reversing course
Iran plans to export petrochemical products to Europe after one year of U.S.-led sanctions on its petchem market
Russia's central bank took drastic action to defend its rouble currency in a surprise midnight raising of interest rates by 650 basis points to 17 percent.
It argues that a major submarine ridge of the Arctic Ocean is an extension of its autonomous Greenland.