One of the main reasons for this was the growing price gap: due to the increase in local taxes, the stronger real and the reduction in economies of scale of Brazilian factories, the retail prices of cars made in Brazil, such as the VW Jetta, are much more expensive than their Mexican counterparts, despite the costs of transport and delivery from Mexico. “Brazilian trade policy is usually one of the `managed trade` agreements, like [the ACE],” Kotchwar says. Such agreements limit the volume of trade — unlike genuine free trade agreements that reduce or lift tariffs and allow market forces to determine the total volume and value of trade, she adds. Among Mexico`s top exports are oil, cars, minerals, electronics and agriculture. Like Mexico, Brazil exports agribusiness, minerals and oil. “They`re not really complementary,” says Guillén. .