ZCZC
BCN-26
BRAZIL-ARGENTINA-FREE-TRADE
Brazil, Argentina agree on free trade in vehicles by 2029
RIO DE JANEIRO, Sept. 7, 2019 (BSS/Xinhua) – Brazil and Argentina signed
on Friday an agreement to have free trade in the automotive sector by the
year 2029.
Under the deal, the two countries will gradually increase the share of
exports to three times the imports by 2029 when they will reach free trade
conditions. The current regulations stipulate that they can export to one
another up to 1.5 times the amount they import.
The agreement also changed minimum local content regulations. A vehicle
exported from Brazil to Argentina with no import tax previously was required
to have at least 60 percent of its parts produced locally; this share will
now fall to 50 percent.
The agreement also foresees an export quota for hybrid and electric
vehicles, which will initially be of 15,000 units and will gradually increase
to 50,000 units by 2029.
Argentina is the main buyer of Brazilian cars and car parts. However, as
the country is facing a long-lasting crisis, purchases have been low,
affecting Brazil’s vehicle exports, which fell 41.5 percent in the first half
of 2019 year-on-year.
BSS/XINHUA/HR/1500