Argentina and Brazil reach new car deal – News

Argentina and Brazil will conclude this Friday a new bilateral agreement with the aim of harmonizing the automobile trade administration between the two countries, which is in free fall in the sector of this sector.

The Minister of Production and Labor, Dante Sica, travels to Rio de Janeiro to announce the new agreement with his Brazilian economic partner, Paulo Guedes.

The announcement will be made at a joint press conference in this city, according to official sources of this portfolio.

Although they have not transcended the details of the agreement, Brazil is interested in reaching an agreement with this government and the negotiations have been accelerated, commercial sources said. local.

The agreement to be signed would set a timetable for the liberalization of marketing agreements and indicate to Brazil, which wants free trade as soon as possible.

The Argentinean industry is in favor of an agreement that provides predictability over time, since investment in the sector has a cycle of at least eight years to reach the targets.

"This agreement includes a joint motor policy between Argentina and Brazil, which it establishes is a flexibility coefficient that governs the exchange and establishes a tariff preference between the two countries' imports." , for every dollar we import from Brazil, we can export 1, 5 ", he explained to Chain 3 Isabel Martínez, vice president of the Chamber of Metallurgists and Components of Córdoba.

The current agreement, signed in mid-2015, extends its mandate until June of next year and expects that from that date, free trade will begin to reign.

Currently, a flexural factor of 1.5 is applied and, at the signing of the pact, it was set to increase to 1.7 between 1 July 2019 and 30 June 2020 following an agreement between the parties.

Asked about some details of the deal to be signed this Friday, Martínez said: "We know he wants to extend for ten years because Brazil demands that he adhere to free trade."

According to the vice president of the CIMCC, "70% of what is produced in Argentina is exported but 70% of what is sold is imported".

"The problem is that there is an asymmetry in manufacturing and incentive volumes." "The agreement just compensates for this and we have to be vigilant."

Interview with Miguel Clariá.