Argentina and Brazil sign free trade agreement for 2029 in agreement with EU – Telam

Argentina and Brazil have signed a free trade agreement for cars that will come into force in 2029 and aims to achieve a regulatory and technological convergence for the trade agreement between Mercosur and the United States. ;European Union.

The agreement was sealed in Rio de Janeiro by Argentine Production Ministers, Dante Sica, and the Brazilian Economy, Paulo Guedes, who agreed that the new treaty would strengthen the The spirit of achieving free trade in motor vehicles as the final destination of this process. .

"We have signed a landmark agreement with Brazil that gives the industry ten years to allow it to grow on the path to innovation and creating quality jobs," Sica told the company. 39, outcome of a meeting with Guedes.

The agreement creates a new scale of offsets through the flexible system of bilateral imports and exports in the automotive sector, the ultimate goal being free trade between the two main partners of Mercosur on July 1, 2029.

"Argentina and Brazil are both becoming more integrated in the world, and we have achieved smart integration three and a half years ago, opening markets and moving faster in Mercosur. "said Sica.

Faced with a journalistic issue, the Argentine minister ruled out the fact that the signing of the agreement had any connection with the electoral result and emphasized that the productive sectors of the two countries benefited from this agreement.

Sica explained that until now, car agreements have been amended every two years, but "now, predictability will be improved, which will generate competitiveness, welfare and the creation of new products." ; jobs. "

"We could not sign an agreement with the European Union without a free trade agreement in Mercosur, we are adapting our rules to the EU regulation, which puts us on the path to competitiveness ", he added.

For his part, Guedes responded that Presidents Jair Bolsonaro and Mauricio Macri make decisions on behalf of states and not governments, dealing with the productive sectors of both countries.

"We are going to open up the Brazilian economy gradually and safely, and the bilateral agreements are becoming more comprehensive, the last port is free trade," said Guedes, who said he is in talks with Mexico and the United States.

In the first half, Brazilian exports to Argentina dropped by 40% and the National Association of Automobile Manufacturers (Anfavea) decided to start replacing the Argentine market with sales to Colombia and Chile.

The previous agreement was valid until June 2020 and the flexibility rule is maintained, which benefits Brazil as it exports more than that imported from Argentina; Half of Brazil's production of cars and auto parts is exported to Argentina.