The new agreement in the automotive sector covers the establishment of an incremental quota system for the next three years without payment of tariffs (35% which tax extra zone products).
After months of negotiations, the Governments of Argentina and Mexico reached a new trade agreement extending the current terms of trade for the next three years.
In a joint work between the public and private sector it was finally possible to reach this new trade agreement between both markets, starting from the last quota, in line with what was promptly requested by the Association.
This new agreement replaces Protocol V to ACE 55, which established the free automotive trade between Argentina and Mexico since March 19, and it was signed by the Chancellor Jorge Faurie and the Ambassador of Mexico in Argentina, Mabel Gómez Oliver.
The new Protocol determines that duty free vehicles worth US$ 701 million may be sold between both countries during 2019; US$ 737 million in 2020, and US$ 774 million in 2021. This represents an increase over the current quota of 10% in 2019 and the additional 5% in 2020 and 2021.
The general guidelines of this agreement between Argentina and Mexico were established by the Minister of Production and Labor of the Nation, Dante Sica, and the secretary of Economy of Mexico, Graciela Márquez Colin, at the meeting held in Mexico DF last February 6.
The guidelines of the agreement:
- An Extension Is established for the next 3 years.
- A progressive increase of annual quota Is established.
- The Current Rule of Origin is maintained.
- Free Trade will be established on 03/19/2022.