When Brazilian President Dilma Rousseff paid a visit to her Mexican counterpart Enrique Peña Nieto this week, the two signed agreements at a time when their countries’ economies could each use a leg up. Rousseff, president of Latin America’s biggest economy, headed to Mexico, the region’s second largest, for her first state visit with her homologue there, as well as the country’s Congress. In an interview with Mexican daily La Jornada ahead of her Monday departure, Rousseff said the trip “opens a new chapter in our relations” that could give rise to a “tequila-caipirinha axis.” Meanwhile, Brazilian outlet Folha de São Paulo interviewed Peña Nieto via email; the Mexican head of state, like Rousseff, forecast commercial and investment agreements during the meetings. Accords would build on March’s crucial automotive deal that, according to Peña Nieto, accounts for 46 percent of bilateral transactions.
A visit in challenging times
The heads of state of the two Latin America giants came together at a moment that’s not without its economic challenges. International Monetary Fund (IMF) projections indicate that Brazil’s economy could shrink by 1 percent in 2015. Unemployment was up in the first quarter of the year and, through the first week of May, year-on-year daily trade rates were down 16 percent.