Mexico is willing to extend an auto export quota pact with Brazil for up to two more years, provided restrictions are eased when the current agreement ends at midnight on March 18, an official familiar with the talks said. The accord, signed in 2012, limits the automotive trade between Mexico and Brazil under an annual quota system. "Provided the quotas are increased from this year, it's possible to consider maintaining a temporary regime for exportation of light vehicles without tariffs for each country ... for one or two years," the official said, insisting on anonymity to be able to speak freely. Mexico's proposal will likely face opposition from the Brazilian government, which plans to push for a reduction of the export quotas to ease its widening trade deficit. "It is no secret that the renewal of the auto treaty depends on Mexico's willingness to review some issues linked to the maintenance and eventual reduction of the quotas," Brazilian Trade Minister Armando Monteiro told reporters in Rio de Janeiro. Brazil recorded a trade deficit of light vehicles with Mexico of $1.34 billion last year, according to data from the Brazilian trade ministry. Another source familiar with the talks said that an agreement could be reached by the end of this week or early next week, adding that Mexico may agree to roll over the treaty. (Reuters)