ARGENTINA COME TO A COMMERCIAL AGREEMENT IN THE AUTOMOTIVE SECTOR
Secretary of Economy of Mexico, Ildefonso Guajardo Villarreal and the Minister
of Industry Argentina Debora Giorgi, met in Buenos Aires, Argentina, in order
to sign the agreement that will govern the Automotive trade for the next four
years, and will maintain, duty-free, the bilateral flows of trade in the
automotive sector, through a scheme of quotas and counter trade, to return to
the free trade on 19 March, 2019.
In addition, the
Undersecretary of Foreign Trade, Francisco de Rosenzweig, as well as the
Ambassador of Mexico in Argentina, Fernando Castro Trenti, have been part of
the ceremony held in the Hall Scalabrini Ortiz of the Finance Palace. Argentina
was attended by the Minister of Economy, Axel Kiciloff; the Secretaries of
Strategic Planning Industrial, Horacio Cepeda, and of International Economic
Relations, Carlos Bianco.
The undersigned is
the result of the meeting held in Mexico City on February 16 this year by both
officials, where the basis for the process of negotiation of Economic
Complementation Agreement (ACE) No. 55 were established and which recently
agreement will allow that light vehicles and auto parts exported between Mexico
and Argentina are exempt from tariffs.
The ACE 55 provides
the following guidelines:
i. Increasing and tariff-free export quotas for the trade in light
vehicles; starting at US $ 575 million on 19 March, 2015, reaching a total of
US $ 638 million in the last year (19March, 2018 to 18 March, 2019). The
increase in quotas is consistent with the expected development of the market.
ii. A mechanism that provides an extension of preferences (independent to
quotas) for the exporter of light vehicles equivalent to the imports it
performs one of both parts; without exhausting the annual quota negotiated.
iii. Management of the quota by the exporter.
iv. Maintain the percentage of 35% in the regional content (rules of origin)
of the vehicles to reach 40% in 2019
v. The Commitment to return to free trade starting 19 March, 2019.
This agreement is a
sign of goodwill and the closeness fostered by the governments of Mexico and
Argentina during the administration of President Enrique Peña Nieto and the
President Cristina Fernandez de Kirchner, in order to continue promoting the
automotive industry in both countries, benefiting a greater productive
integration of the region.