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Mexican President Felipe Calderon is urging lawmakers in his country and in Brazil to consider a free-trade agreement between the Latin American giants, Bloomberg News reported.
If it's approved, this would be no small economic development. First, the pact would further diversify Mexico's trade base: currently, 80% of Mexico's exports go to the United States. Second, and perhaps even more significant, the action would create spin-off commerce in each country. Typically, when free trade pacts are passed, they lead to increases in GDP and in aggregate demand, which leads to new businesses.
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