Mexican, Argentinian associations agree new terms for automotive free trade

Mexico’s and Argentina’s automotive industries have reached an agreement to re-establish preferential trade in light vehicles by March 19, 2015, according to Mexican automotive association Amia.

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Amia and Argentina’s Assn of Automotive Makers (Adefa) have now asked their respective governments to start a formal dialogue within the Economic Complementation Agreement 55 (Ace-55) based on this proposal.

“Amia and Adefa agreed to send this accord immediately to their governments, asking them to initiate a formal dialogue,” Amia said.

The agreement between Amia and Adefa is based on increased export quotas between the two nations that would liberalise the trade in light vehicles between Mexico and Argentina, Amia added. But it gave no details of the quotas agreed.

In June 26 this year, Argentina ordered Ace-55 to be suspended for three years, forcing companies established in Mexico to pay a 35% duty to export cars to the South American country.

In August, the Mexican government said it was taking a trade case against Argentina to the World Trade Organization, asking it to call for talks between the two nations.

Bilateral trade
Mexican vehicle exports to Argentina for January-October 2012 reached 52,769 units, while 6,047 cars were imported, Amia said.

For the same period, Argentina’s deficit was around 46,722 units.

Amia said talks with its Argentine counterpart were aided by Mexican economy minister Bruno Ferrari.

The Ace-55 agreement was signed in 2002 between Mexico and the Mercosur bloc. The other Mercosur countries – Brazil, Uruguay and Paraguay – continue to honour the terms of the agreement, although Brazil did agree a cap on the amount of imports from Mexico earlier this year.

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