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The Minister of Foreign Affairs, Ambassador Mauro Vieira, and the Minister of Development, Industry and Foreign Trade, Armando de Queiroz Monteiro Neto, signed the Cooperation and Investment Facilitation Agreement between Brazil and Mexico with the Secretary of Economy of Mexico, Ildefonso Villarreal, on the occasion of the visit of the President of the Federative Republic of Brazil to that country.

The Cooperation and Investment Facilitation  Agreement (CIFA) between Brazil and Mexico is the third treaty signed based on the new Brazilian model of investment agreements, prepared by Itamaraty, the Ministry of Development, Industry and Foreign Trade, the Executive Secretariat of CAMEX and the Ministry of Finance, in consultation with the private sector. The Agreement with Mexico is the result of continuous improvement of the Brazilian model of investments agreements, following  the experience with Mozambique and Angola, and based on previous discussions with African and Latin American partners.

The CIFA signed with Mexico seeks to encourage mutual investments through intergovernmental dialogue mechanism, supporting companies in process of internationalization. Through the CIFA, there will be wider information of business opportunities, exchange of information on regulatory frameworks and an appropriate mechanism to prevent and, occasionally, settle disputes. The new model provides a solid framework for investments on both sides.

Brazil is the main destination for Mexican investments in Latin America. In the opposite direction, Brazilian investments in Mexico reached about US$ 120 million in 2014. A highlight among Brazilian companies operating in that country is the joint venture between BRASKEM and the Mexican group IDESA to develop the Ethylene Project XXI, for the construction of a petrochemical complex. The project is currently the largest private investment in Mexico, with a total amount estimated at USD4.5 billion. GERDAU plans to build a steel plant in the Mexican state of Hidalgo, with investments estimated at USD600 million. OXITENO, in turn, is the market leader in segments of the chemical industry in Mexico, following several acquisitions of local companies.

Brazil is engaged in negotiations of CIFAs with the following countries: South Africa, Algeria, Chile, Colombia, Malawi, Morocco, Peru and Tunis. The agreement has already been signed with Mozambique and Angola, and now with Mexico, while negotiations with Malawi have been concluded.

Mexico City, May 26, 2015

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