Automotive Industry: Argentina and Brazil sign today a new car exchange agreement

The Minister of Production and Labor, Dante Sicaand the Minister of the Economy of Brazil, Paulo Guedeswill sign an afternoon today new bilateral agreement between countries to regulate car trade. Brazil is the main trading partner d & # 39; Argentina

Sica will travel to Rio de Janeiro to announce the agreement in a press conference at 15:30, reported the newspaper La Nación. TN Autos consulted several car manufacturers but did not want to give any information. Instead, they claimed to be at wait for the details of the agreement.

According to La Nación, it was will push back free tradeand instead current terms of trade. However, the plan for progressive liberalization would be defined.

Between January and August, 65.7% of national cars exported they were destined for Brazil, according to the Association of Automobile Factories (Adefa). In turn six of the ten best-selling models in the country in August they arrive from Brazil.

New Common Automotive Pact (PAC) accelerated after the results of PASO, because – they badured the sources of the sector – they were looking for bring predictability sector for ongoing investments. Some of the industrial projects involving new models made in the country are those of Chevrolet (Santa Fe), and PSA (Peugeot-Citroë-DS) and Volkswagen in the province of Buenos Aires.

Currently "Flex" (exchange coefficient), which governs the number of cars imported and exported between the two countries, it is 1.5. In other words, for every dollar exported, Argentina can import without customs duty US $ 1.5.

Negotiations for free trade between the two countries they take years. Today, duty-free trade is sought on the side of Brazil, but meets some resistance in Argentina. In the sector, they argue that the reason is the lack of competitiveness of local industry against the Brazilian.