Mexico and Brazil enter into treaty to avoid double taxation. On January 1, 2007. the Decree Promulgating a Treaty between theGovernments of the United Mexican States and Federal Republic of Brazil to Avoid Double Income Taxation and Prevent TaxEvasion was published in the Official Journal of the Federation, along with its protocol, signed in Mexico City on September 25,2003. With this, Mexico will allow its tax residents to credit against Mexican income tax owed those taxes that have been paid inBrazil. This is the same treatment provided under similar treaties entered into by Mexico, in which the treaty attempts tostandardize various tax definitions in both jurisdictions, promote the exchange of fiscal information, establish guidelines foravoiding abuses in the use and interpretation of the treaty and, particularly, alleviate the double imposition of taxes between thecontracting states. With this agreement, Brazil joins a group of countries with which Mexico currently has treaties to avoid doubletaxation including, among others, the United States, Canada, China, Russia, Indonesia, Portugal, Austria, Israel, Chile, Germany,Japan, Greece, Luxembourg, Romania, Poland, the Czech Republic, Australia and Argentina. Strategic Alliance Agreement reached between Mexico and Chile. A Strategic Alliance Agreement between Mexico and Chilewas published in the Official Journal of the Federation on December 19, 2006 and entered into force on December 27, 2006. Theagreement seeks to strengthen the bilateral relationship through a strategic alliance in political, economic, commercial andcooperation areas between Mexico and Chile. In the political arena, it seeks to strengthen dialogue in furtherance of the bilateralrelationship, as well as to encourage acting jointly in regional and multilateral forums for the defense and promotion ofdemocracy and human rights. With respect to commercial and investment matters, such items will continue to be governed by theprovisions of the Free Trade Agreement entered into by the United Mexican States and the Republic of Chile, signed on April 17,1998. In regard to government cooperation, these efforts will be focused on political, institutional, democracy and human rights,as well as economic and environmental themes.
