SAO PAULO, Nov 7 (Reuters) - Brazil's competition watchdog Cade said on Monday that a deal struck in January between Latam Airlines, British Airways and Iberia could have a negative impact on routes between Brazil and Europe.

"It has the potential to generate competitive problems in the market for air transportation of passengers between Brazil and Europe, especially on the routes Sao Paulo-London and Sao Paulo-Madrid," Cade said.

(Reporting by Alberto Alerigi; Writing by Daniel Flynn; Editing by Brad Haynes)