Brazil expands automotive trade deal with Argentina

The Brazilian federal government has issued a decree extending the automotive trade agreement with Argentina, easing market access rules for commercial vehicles such as buses, vans, and lorries. 

The measure was signed by Vice-President Geraldo Alckmin, who also heads the Ministry of Development, Industry, Trade and Services. The update aims to deepen economic integration between the two countries within the automotive sector. This is reported by Metropoles, a partner of TV BRICS.

The decree also eliminates import tariffs on auto parts not manufactured in Brazil. In return, companies benefiting from this exemption are required to invest 2 per cent of the import value into research, innovation, or priority industrial programmes tied to the automotive industry. This move is designed to foster technological development and modernisation within the sector.

According to Alckmin, the revised agreement not only improves market access conditions and reduces costs for non-domestically produced parts, but also enhances the rules of origin, criteria used to determine whether a product is genuinely manufactured in Brazil or Argentina. 

In 2024, bilateral trade in automotive products reached US$13.7 billion, representing half of the total US$27.4 billion in trade between Brazil and Argentina.